We have audited the accompanying standalone financial statements of
Veena Textiles Limited (the Company) which comprise the Balance Sheet
as at 31st March 2015, the Profit and loss Statement, the Cash flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS:
The Company''s Board of Directors is 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 flow 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 statement 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 thereunder.
We have 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
statement are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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 purposes of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over the financial reporting and the
operating effectiveness of such controls. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the company''s
Directors 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 on the standalone financial statements.
In our opinion and to the best of our information and according to the
explanations given to us the accompanying financial statement 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.
Reports on Other Legal and Regulatory Requirements:
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 section143 of the Act, we give in Annexure a statement
on the matters specified in paragraphs 3 and 4 of the said order to the
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
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 it appears from our examination of those
c) The Balance Sheet Profit and loss Statement and the Cash Flow
Statements dealt with by this Report are in agreement with the books of
d) In our opinion, the aforesaid standalone 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 representation received from the directors
as on31st March 2015, taken on records by the Board of Directors, none
of the directors are disqualified as on 31st march 2015, from being
appointed as director in terms of Sectrion164(2) of the Act.
f) With respect to other matters to be included in the Auditor''s Report
in accordance with Rule 11 of the Companies Act (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 positions in its financial statements as referred to in Note
3 to the financial statements.
ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
iii) There has been no delay in transferring amounts required to be
transferred to the Investor Education and Protection Fund by the
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in our Independent Auditor''s Report to the
members of the Company on the standalone financial statements for the
year ended 31st March 2015 1.In respect of Fixed Assets:
a) The Company has generally maintained proper records showing
particulars, including ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT The
Annexure referred to in our Independent Auditor''s Report to the members
of the Company on the standalone financial statements for the year
ended 31st March 2015 1.In respect of Fixed Assets:
a) The Company has generally maintained proper records showing
particulars, including quantitative details and situations of fixed
b) The Company has phased programmed of physical verification of fixed
over a period of three years which in our opinion is reasonable having
regard to the size of the Company and the nature of its business;
accordingly the physical verification part of the Fixed assets was
carried out by the management during the year and we are informed that
no material discrepancies were noticed on such verification.
2. In respect of inventories
(a) Physical verification of inventories other than those held by the
third parties have been conducted by the management
(b) The procedures of physical verifications of inventories, followed
by the management In our opinion are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c ) In our opinion the Company is maintaining proper record of
inventory. The discrepancies which were noticed on physical
verification of inventory as compared to book records, have been
properly dealt with in the books of account;
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 Companies Act 2013.
iv. In our opinion and according to the information and explanations
and representations given to us, there are generally adequate internal
control procedures commensurate with the size of the company and the
nature of its business with regard to purchase of inventory, fixed
assets and for sale of goods. In our opinion and according to the
information and explanations given to us we have not observed any major
weakness in the internal control system during the course of audit.
v. In our opinion and according to the information and explanations
given to us the Company has not accepted any deposits.
vi. Cost records have not been prescribed to the Company.
vii. a. According to the records of the Company it has been regularly
depositing undisputed statutory dues like Investor Education and
protection Fund, Provident Fund, income Tax, Sales Tax, Wealth Tax,
Custom duty, Service Tax, Central Excise duty and Cess and other
statutory duties with appropriate authorities.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty, Service Tax, Excise Duty and Cess were in arrears as
at 31st March 2015 for a period more than six months from the date they
c. According to the information and explanations given to us there are
no dues of Sales Tax Income tax, customs duty Wealth Tax Excise duty
and cess which have not been deposited on account of dispute.
d. According to the information and explanation given to us there are
no amount required to be transferred to Investor education and
protection fund in accordance with the relevant provisions of the
Companies Act and rules made there under.
viii. The accumulated losses at the end of the financial year has
exceeded its 50% of Net worth. There is cash loss during the year and
also in the immediately preceding financial period..
xi. The Company has not repaid the dues to the financial Institutions
as detailed below:
Particulars Amount in Lakhs Period from
IIBI 157.77 1996
x. According to the information and explanations given to us, and the
representations made by the management, the company has not given any
guarantee for loans taken by the others from any bank or financial
xi. The Company has not received any new term loan during the year
xii. According to the information and explanations given to us no fraud
on or by the company has been noticed or reported during the year.
For V.N.G. NATH ASSOCIATES
Komarapalayam Membership No. 200608
27 / 06 / 2015 Firm Regn. No. 7159 S