| 1. We have audited the accompanying financial statements of the CEENIK
EXPORTS (INDIA) 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 then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The management and Board of Directors or the Company are responsible
for the matters stated 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 Standard specified under Section 133 of the Act, read with
rule 7 of the Companies (Accounts) Rules,2014. This responsibility
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; design; implementation and
maintenance of adequate internal financial controls, that are operating
effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
the ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedure to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's 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 financial control relevant to the Company's
preparation of the financial statements, that give a true and fair view,
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Company's management and Board of Directors, as
well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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 fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015 and its loss and its Cash Flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of the Section 143 of the Act, we give in the Annexure
a statement on the matters specified in paragraph 3 and 4 of the Order.
8. As required by Section 143(3)oftheAct,wefurtherreportthat:
a.we have sought and 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 examinations of those
books;
c. the Balance Sheet, the Statement of Profit and Loss, and Cash Flow
statement dealt with by this Report are in agreement with the books of
accounts;
d. in our opinion, the aforesaid financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014;
e. on the basis of written representations received from the directors
as on March 31,2015, and 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;
f. in our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company has filed a suit in lower court having jurisdiction in
Mumbai against overseas party for realization of proceeds of sales.
ii. The Company did not have any long-term contracts including
derivative contracts; as such the questions of commenting on any
material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
Annexure referred to in paragraph 7 Our Report of even date to the
members of Ceenik Exports (India) Limited on the accounts of the
company for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that;
i. a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
b. As explained to us, fixed assets have been physically verified by
the management during the year and there is a regular programme of
verification which in our opinion is reasonable having regard to size
of the company and the nature of assets. As informed to us no material
discrepancies were notices on such verification.
ii. a. As explained to us, the inventory has been physically verified by
the management during the year. According to the information and
explanations given to us, we are of the opinion, the frequency'of
verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the inventories
followed by the company are reasonable and adequate having regard to
size of the company and the nature of business.
c. The company has maintained records of inventories. As explained to
us and explanation given to us, no material discrepancies are noticed
on verification between the physical stocks and the book records.
However, the Company needs to improve methods of maintaining records of
inventories of raw materials sent for processing, stitching, washing
and other processes.
iii. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to sale of goods and services. During the course of our audit,
we have not observed any continuing failure to correct weakness in
internal controls. However, the Company needs to adopt better
techniques along with technology in its internal control procedure.
v. The Company has not accepted any deposits from the public covered
under Section 73 to 76 of the Companies Act, 2013.
vi. As informed to us, the Central Government has not prescribed
maintenance of cost records under sub- section (1) of Section 148 of
the Act.
vii. a. According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, Investor Education Protection Fund, Employees'
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Cess
and other material statutory dues applicable to it and no amount were in
arrears as at 31". March, 2015 for a period of more than six months from
the date they became payable.
b. Details of dues of Service tax which have not been deposited as on
31st March 2015 on account of disputes are given below:
Sr. No. Name of Nature of the Amount Period to
Statute Dues (Rs, in Lacs) which it relates
1. Finance Act Service Tax 8.80 Financial Year
1994 2007-08 to 2010-11
2. Income Tax Act Income Tax 2.12 Financial Year
1961, 2011-12
Sr. No. Name of Forum where
Statute dispute Is pending
1. Finance Act Commissioner of
1994 Service Tax (Appeals)
2. Income Tax Act Commissioner of
1961, Income Tax (Appeals)
c. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise.
viii. There are no accumulated losses at the beginning of the year,
and the accumulated losses are not more than fifty percent of its net
worth. The company has incurred cash losses during the financial year
covered under audit and but not in the immediately preceding financial
year.
ix. Based on our audit procedures and on the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to a financial institutions and or
bank.
x. According to the information and explanations given to us, the
company has not given guarantees for the loans taken by others from
banks or financial institutions.
xi. The Company has raised new term loans during the year. The term
loans granted to the company have been applied for the purpose for
which they were raised.
xii. During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by tl ie
Management.
For Udayavar Dhanesh Kumar & Associates
Chartered Accountants
Firm Registration No: 119401W
Dhanesh Kumar Udayavar
Place: Mumbai Proprietor
Date: 30.05.2015 Membership No. 102031 |