A K Spintex Auditors Report


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