The Members of
KAJAL SYNTHETICS AND SILK MILLS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of KAJAL SYNTHETICS AND SILK MILLS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,2013, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management Responsibility for Financial Statements
Management is responsible for 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 Standards referred to in sub-section (3C) of Section 211 of the "Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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 from 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 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 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 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 a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanations given to us, the said financial statements give the information required -by the Act in the manner so required and give a true and fair 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 31, 2013; and
b) in the case;.of the Statement of Profit and Loss, of the profit for the year ended on that date; and
c) in the case pf 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 issued by the Central Government of India in terms of section 227 (4A) of the Companies Act, 1956 (the Act) and on the basis of such checks as we consider appropriate and according to the information and explanations given to us, we set out in the Annexure a statement on the matters specified iniparagraphs 4 & 5 of the said Order.
2. As required by Section 227(3) of the Act, 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 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;
d) In our opinion, the balance sheet, statement of profit and loss, and cash flow statement comply with the Accounting Standards referred to in sub~section(3C) of Section 211 of the Act;
e) On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act.
FOR S.S. RATHI & CO.,
ICAI Firrm Registration No :- 108726W
(D. P. RATHI)
Membership No.: 042068
PLACE : Mumhai
Date: 28th June, 2013
ANNEXURE TO INDEPENDENT AUDITORS REPORT
(Referred to in Paragraph 1 of the Independent Auditors Report of even date to the members of Kajal Synthetics And Silk Mills Limited, on the accounts for the year ended March 31, 2013)
1. As the Company does not own any fixed asset, Clause 4(i)(a) of the Order relating to maintenance of records showing full particulars including quantitative details and situation of fixe$ assets, clause 4(i)(b) relating to physical verification thereof and clause 4(i)(c) relating"* to disposal of substantial part of the fixed assets and effect thereof, are not applicable.
2. (a) The?Securities held as investments have been physically verified by the Management / confirmed with the statements of holdings provided by the various mutual funds and other depository participants at the financial year end. In our opinion, the frequency of verification / confirmation is reasonable.
(b) In our opinion, the procedures of physical verification / confirmation of securities held as investments followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.
(c) On the basis of our examination of the records of the Company relating to securities held as investments, in our opinion the Company has maintained proper records of investments and no material discrepancies between the book records and the physical inventory have been noticed.
3. The Company has neither granted nor taken any loans, secured or unsecured, to or from companies, firms or other parties covered in the Register maintained under section 301 of the Act.
4. In our opinion and according to the information and explanations given to us there is an adequate internal control system commensurate with the size of the Company and the nature of its business in respect of purchase and sale of securities held as investments. . Further on the basis of our examination of the books of accounts and according to the information and explanations given to us, we have not come across nor have been informed of any instance of major weaknesses in internal control system.
5. In our opinion and according to the information and explanations given to us,
a. The particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under Section 301 of the Act.
b. During the year under review the Company has not entered in any transaction made in pursuance of contracts or arrangement that need to be entered in the register maintained under section 301 of the Act.
6. The Company has not accepted any deposits from the public during the year.
7. The Company does not have formal system of internal audit but there are adequate checks and controls at all levels, which are broadly commensurate with the size of the Company and nature of its business.
8. We are informed that the Central Government has not prescribed maintenance of cost records under Section 209(1)(d) of the Act in respect of the Companys activities.
9. a) According to the books of account and records as produced and examined by us, in accordance with generally accepted auditing practices in India and also Management representations, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of Income-tax, Service tax, Cess and other material statutory dues as applicable with the appropriate authorities in India.
b) According to the information and explanations given to us as at 31st March 2013 there are no dues which have not been deposited on account of any dispute in respect of Income tax, Service tax and Cess.
10. The Company does not have any accumulated losses as at March 31, 2013 and it has not incurred any cash losses during the financial year ended on that date and in the immediately preceding financial year.
11. According to the information and explanations given to us and according to the books and records as produced and examined by us, there are no borrowings from financial institutions or bank and no debentures have been issued by the Company. Hence, the question of default in repayment of dues does not arise.
12. The Company has not granted any loans and advances on the basis of security by way of pledge of sfWes, debentures and other securities.
13. In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund / society. In view of the nature of activities carried on by the Company during the year, the provisions of any special statue applicable to chit fund or a nidhi / mutual benefit fund / society are not applicable to the Company.
14. According to the information and explanation given to us the Company is having investment in share and units of mutual funds. The Company has maintained proper records of the transactions and contracts and timely entries have been made therein. All the shares and units of mutual funds have been held by the Company in its own name.
15. The Company has not given any guarantee for loans taken by others from bank or financial institutions.
16. The Company has not taken any term loans during the year.
17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet and Cash Flow Statement of the Company, in our opinion there are no funds raised on short term basis which have been used for long term investment.
18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issue during the year.
21. During the course of our examination of the books of accounts carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such cases by the management.
For S. S. RATHI & CO.
Firm Registr&ttiaiilNo. 108726W
Membership No.: 042069
Date: 28th June, 2013