Janice Textiles Ltd merged Auditor Reports

JANICE TEXTILES LIMITED ANNUAL REPORT 2003-2004 AUDITORS REPORT TO THE MEMBERS OF JANICE TEXTILES LIMITED 1) We have audited the attached Balance Sheet of JANICE TEXTILES LIMITED as at 31st March 2004, the Profit and Loss Account for the year ended on that date annexed thereto and the Cash Flow Statement for the year ended on that date. These financial statements are responsibility of the Management Our responsibility is to express an opinion on these financial statements based on our audit. 2) 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 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 as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3) As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said order. 4) Attention is invited to: a) Note no. 7 of schedule N -regarding preparation of accounts on going concern basis: b) Note no 8 of schedule N regarding write back of Interest Liability payable to Central Bank of India: 5) Further to our comments in the Annexure referred to in paragraph 3. 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 purposes of our audit; b) In our opinion, proper books of accounts as required by 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 the Cash Flow Statement dealt with by this report are in agreement with the books of account; d) In our opinion, the Balance Sheet. the Profit and Loss / Account and the 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: e) On the basis of written representations received from the Directors and taken on record by the Board of Directors. we report that none of the said Directors are. disqualified as on 31st March 2004 from being appointed as directors 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. subject to what is stated in paragraph 4 above, 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 the Balance Sheet of the state of affairs of the Company as at 31st March, 2004 ii. in the case of the Profit and Loss Account, of the Loss of the Company for the year ended on that date: and iii. in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. FOR AND ON BEHALF OF V. PAREKH & ASSOCIATES CHARTERED ACCOUNTANTS MUMBAI, SD/- DATED : 31st August. 2004 RASESH V. PAREKH, PARTNER Membership No. 38615 ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. 2004 OF JANICE, TEXTILES LIMITED i. In respect of its Fixed Assets a. The Company has maintained proper records showing full particulars. including quantitative details and situation of its fixed assets. b. The Fixed assets have been physically verified by the management at reasonable intervals and no discrepancies were observed on such verification. c. The Company has not disposed off any of its fixed assets during the year. ii. In respect of its inventories a. The physical verification of inventories has been conducted at reasonable intervals by the management. b. In out opinion and according to the explanations given to us. the procedures for physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business. c. In our opinion and according to the explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were observed during the course of physical verification. iii. The Company has not taken or given loans to any of the entities covered under section 301 of the Companies Act, 1956 during the year. In respect of interest free loans obtained from its 2 Directors in earlier years without any stipulation as to repayment the maximum amount outstanding during the year was Rs. 76,24,201/-. The terms and conditions on which the loans were obtained are not prima facie prejudicial to the interest of the Company. iv. In our opinion, and according to the explanations given to us. the Company has adequate internal control procedures commensurate with the size of the Company with regard to the purchase of inventor. fixed assets and sale of goods. v. The Company has not entered into any contract with any of the parties. which were required to be entered into the registers required to be maintained in pursuance of section 301 of the Companies Act. vi. In our opinion and according to the explanations given to us the Company has not accepted any deposits within the meaning of Section 58A and Section 58AA of the Act and the rules framed there vii. The Company does not have a formal internal audit system viii. The manufacturing operations of the Company have remained suspended for the last 2 years and no cost accounting records are maintained by the Company. ix. a. According to the information and explanations given to us it,, respect of statutory and other dues the Company is generally regular in depositing applicable undisputed statutory dues. As at 31st March 2004 there were no undisputed statutory dues outstanding for more than six months from the date they become payable. b. According to the information and explanations given to us there were no disputed dues remaining unpaid. x. The accumulated losses as at the end of the financial year is trope than fifty percent of the net worth of the Company. The Company has incurred cash losses during the financial year and also during the preceding financial year. xi. The Company has defaulted in repayment of loan taken from Bank. The Company is in negotiations with the bank for rescheduling of repayment obligation. The Company has not granted loans and advances on the basis of security by way of pledge of shares. debentures and other securities xii. In our opinion and according to the information and explanations given to us the Company has not given any guarantees for loans taken by others from banks and institutions xiii. The Company has not obtained any term loans during the year. xiv. According to the records examined by us and the information and explanations given to us, funds raised on short term basis have not prima facie been used during the year for long term investment and vice versa xvi. The Company has not made any preferential allotment of Shares to any persons during the year. xvii. The Company has not issued any debentures and hence the question of creating securities in respect thereof does not arise. xviii. During the year, the Company has not raised any money by public issues. xix. To the best of our knowledge and belief and according to the explanations given to us, no fraud on r by the Company was noticed or reported during the year. xx. In our opinion and according to the explanations given to us, the nature of the Companys business/ activities during the year are such that clauses xiii, xiv are not applicable to the Company. FOR AND ON BEHALF OF V. PAREKH & ASSOCIATES CHARTERED ACCOUNTANTS MUMBAI SD/- DATED : 31st August, 2004 RASESH V.PAREKH, PARTNER Membership No. : 38615