We have audited the accompanying Standalone Financial Statements of
FINEOTEX CHEMICAL LIMITED (''the Company'') which comprises the Balance
Sheet as at 31st March 2015, the Statement of Profit and Loss and Cash
Flow Statement for the year ended on that date and a summary of
Significant Accounting Policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Management and Board of Directors of 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 standalone
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 specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also 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; and design, implementation and maintenance of adequate
internal financial controls, 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 fair view and are free from material
misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these standalone
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 ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatements.
An audit involves performing procedures 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
controls 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 Management and Board of Directors
of the Company, as well as evaluating the overall presentation of the
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 aforesaid standalone 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 March 31, 2015, and its profit and its cash flows for the year ended
on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. 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 section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(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
purpose 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
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
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;
e. On the basis of written representations received from the directors
as on 31st March 2015, and taken on record by the Board of Directors,
none of the directors are disqualified as on 31st March, 2015 from
being appointed as a director in terms of sub-section (2) of section
164 of the Act.
f. With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us
i. The Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements - refer note
27 to the financial statements.
ii. The Company did not have any material foreseeable losses on its
long term contract including derivative contracts
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund.
ANNEXURE TO THE AUDITOR REPORT
(Referred to in Paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
1. Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets.
b. The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
a. The inventory has been physically verified by the management during
the year. In our opinion, the frequency of such verification is
b. In our opinion, the procedures for the physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c. On the basis of our examination of records of inventory, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noted on physical verification between the physical
stocks and the book records were not material.
3. Loans and Advances Granted:
a. According to the verification of books and records and the
information and explanation given to us, the Company has not granted
any loans that are repayable on demand, to companies covered in the
register maintained under section 189 of the Act. Hence, the
requirement of clause (iii) of paragraph 3 of the Order is not
applicable to the Company.
4. Internal Controls:
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 nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
Further, on the basis of our examination of the books and records of
the Company and according to the information and explanations given to
us, we have not observed continuing failure to correct major weaknesses
in the internal control system.
The Company has not accepted any deposits covered under the provisions
of section 73 to 76 of the Act and rules made thereunder, hence clause
(v) of paragraph 3 of the said order is not applicable to the Company.
6. Cost Records:
We have broadly reviewed the books of account maintained by the Company
pursuant to the rules prescribed by the Central Government for the
maintenance of cost records under Section 148(1) of the Act and are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained. However, we have not made a detailed
examination of the records.
7. Statutory Dues:
a. According to the information and explanations given to us and based
on the records examined by us, the Company has been generally regular in
depositing undisputed statutory dues including provident fund,
Employee''s State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Value Added Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues as and wherever applicable to the Company, with
appropriate authorities and no dues remain outstanding for a period of
more than six months from the date they became payable.
b. According to the information and explanations given to us and based
on the records of the Company examined by us, there are no dues of
Sales Tax, Wealth Tax, Service Tax, Value Added Tax, Custom Duty,
Excise Duty and cess which have not been deposited on account of any
dispute except for the following
Name of Nature Amount Period to Forum
Statute of dues (in Rs.) which the where
amount dispute is
Income Income 2,14,820/- A.Y. 2012-13 CIT(A) -
Tax Act, tax 20
c. Based on the records of the Company examined by us, there has been
no delay in transferring the amount required to be transferred to
Investor Education and Protection Fund by the Company in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made thereunder..
8. Accumulated Losses:
The Company has no accumulated losses at the end of financial year and
it has not incurred cash losses in the current and in the immediately
preceding financial year.
9. Dues To Financial Institutions/Banks:
According to the information and explanations given to us and on the
basis of our examination of the books of accounts, the Company has not
defaulted in repayment of dues to Financial Institutions or Banks or
Debenture holders, wherever applicable to the Company.
10. Guarantees Given
According to the information and explanations given to us, the Company
has not given any guarantees for loans taken by others from banks and
11. Application of Term Loan
According to the information and explanations given to us, as also on
the basis of books and records examined by us, the Company has not
obtained any fresh term loans during the audit period.
To the best of our knowledge and belief, according to the information
and explanations given to us, no fraud on or by Company have been
noticed or reported during the year.
For UKG & Associates
Firm Regn No : 123393W
Champak K. Dedhia
Place: Mumbai Partner
Date: 29th May, 2014 Membership No: 101769