Independent Auditor
To,
The Members of
M/S INDIA POLYSPIN LIMITED
SURAT.
Report on the Financial Statements
We have audited the accompanying financial statements of M/S INDIA POLYSPIN LIMITED
(the company), which comprise the Balance Sheet as at 31-3-2014 and the Statement of
Profit & Loss for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management s Respnsibility for the Financial Statements
Management is responsible for the prepration of these financial statements that give a
true and fair veiw of the financial position, financial performance and cash flow of the
Company in accordance with the accounting standards reffered to in subsection(3C) of
section 211 of the Companies Act 1956 ("the Act"). this respnsibility includes
design, implementation and maintainance of internal control relevant to the prepration and
fair presentation of the financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with Standards on Auditing issued by the ICAI.
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 of
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 auditors
judgement, 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 Companys 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 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 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 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
principals generally accepted in India;
a) In the Case of the Balance Sheet, of the state of affairs of the Company as at
31-03-2014 and
b) In the case of the Statement of Profit & Loss Account, of the Loss for the year
ended on that date.
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, 2003, as amended by companies
(amendment) order 2004,
2 As required under [provisions of section 227(3) of the Compmiies Actb, 1956, we
report that:-
(i) 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;
(ii) 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;
(iii) The Balance Sheet , Statement of Profit and Loss Account and Cash flow statement
dealt with by this report are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss Account and Cash
flow statement dealt with by this report comply with the accounting standards referred to
in sub-section (3C) of Section 211 of the Companies Act, 1956;
(v) On this basis of written representations received from the directors, as on
31-3-2014 and taken on record by the Board of Directors, we report that none of the
directors is disqualified as on 31-3-2014 from being appointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;")
For SONI JHAWAR & CO.
CHARTERED ACCOUNTANTS
FIRM REG. NO: 110386W
s/d
(SATYANARAIN SONI)
PARTNER
M.NO. 71689
PLACE:SURAT
25th May, 2014
ANNEXURE TO THE AUDITORS REPORT AS REFERRED TO IN PARA 3 OF THE SAID REPORT OF EVEN
DATE
(i) The company does not have any Fixed Assets, hence clause (i) (a), (b) and (c) are
not applicable to the company during the year under audit.
(ii) The company does not have any inventories, hence clause (ii) (a), (b) and (c) are
not applicable to the company during the year under audit.
(iii) (a) The company has granted loans to companies, firms and other parties covered
under the Register maintained under Sec 301 of the Companies Act,1956 aggregating
Rs.4,50,000/- to one such parties.
(b) In our opinion, the rate of interest and other terms and conditions on which the
said loans have been given are not, prima facie, prejudicial to the interest of the
company.
(c) As explained to us the receipts of payment of principal amounts and Interest, if
any, are as per the terms of the said loan.
(d) As explained to us there is no overdue amount.
(e) The company has taken unsecured loans from companies, firms and other parties
covered in the Register maintained under Section 301 of the Companies Act, 1956 amounting
Rs. 1,69,66,636/- from 7 such parties.
(f) In our opinion, the rate of interest and other terms and conditions on which the
said loans have been taken are not, prima facie, prejudicial to the interest of the
company
(g) As explained to us the company is regular in payment of principal amounts and
interest if any, as per the terms of the said loan.
(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. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) (a) Based on audit procedures applied by us and according to the information and
explanations provided by the management, we are of the opinion that the transactions that
need to be entered into the register maintained under section 301 of Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations given to us, the
Contract or arrangemants entered in the register maintained under Section 301 and
exceeding the value of five lakh rupees in respect of any party during the year have been
made at prices which are reasonable having regard to prevailing market prices at the
relevant time.
(vi) In our opinion and according to the information and explanation given to us, the
company has not accepted any deposits from the public within the meaning of Sec.58A and
58AA of the Companies Act, 1956.
(vii) The company does not have a formal Internal Audit System. However, in our
opinion, there are adequate internal control procedures commensurate with the size of the
company and the nature of its business.
(viii) According to the information and explanation given to us, the company is not
required to maintain cost records under section 209(l)(d) of the Companies Act, 1956.
(ix) (a) According to the information and explanation given to us, the company is
generally regular in depositing with appropriate authorities undisputed statutory due
including provident fund, investor education protection fund, employees state insurance,
income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material
statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of income-tax, wealth tax, sales tax, custom duty, excise duty and cess
were in arrears as at 31/03/2014 for a period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are no dues of
sales tax, custom duty, wealth tax, excise duty and cess that have not been deposited on
account of any dispute.
(x) The accumulated losses of the company are more than fifty percent of its net worth.
The company has also incurred cash losses during the financial year covered by our audit
and also incurred cash loss in the immediately preceding financial year.
(xi) Based on the audit procedures and on the information and explanations given by the
management, we are of the opinion that the company has not defaulted in repayment of dues
if any, to any financial institution, bank or debenture holder.
(xii) Based on the audit procedures and as per information and explanation given by the
management, the company has not granted loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Companief
(Auditors-Report) Order, 2003 (As Amended) are not applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditors Report) Order, 2003 (As Amended) are not applicable to the company.
(xv) As informed to us, the company has not given any guarantees for loans taken by
others from banks or financial institutions.
(xvi) On the basis of our examination of the books of a/c and the information and
explanation given to us, in our opinion, the term loans taken , have been applied for the
purpose for which they were raised.
(xvii) On the basis of our examination of the books of a/c and the information and
explanation given to us, in our opinion, the funds raised on short term basis have not
been used for long term investment.
(xviii) The company has not issued any Bonus shares during the year.
(xix) The company has not issued any Debentures during the year.
(xx) The company has not made any preferential allotment of shares to the parties and
companies covered in the register maintained under section 301 of the Companies Act, 1956
during the year.
(xxi) During the year under audit the company has not issued debentures.
(xxii) The company has not raised any money by public issue during the year.
(xxiii) Based upon the audit procedures performed and information and explanation given
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 SONI JHAWAR & CO.
CHARTERED ACCOUNTANTS
s/d
(SATYANARAIN SONI)
PARTNER
M.NO. : 071689
FIRM REG. NO: 110386W
PLACE :SURAT
DATE : 25th May, 2014
+91-9892691696
