Report on the Financial Statements
1.We have audited the accompanying financial statements of VEENA
TEXTILES LIMITED(the company”), which comprise the Balance Sheet as at
31st March, 2013, the statement of Profit and Loss and the Cash Flow
statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Company''s 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 Section
211(3C) of the Companies Act, 1956 (the Act”) and in accordance with
the accounting principles generally accepted in India. 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.
3. Our responsibility is to express an opinion on these financial
accordance 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
4. 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 control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
6. In our opinion and to the best of our information and according to
the explanations given the information required by the Act in the
manner so 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 31st March,2013;
(b) in the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 (the
order issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
8. 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 purposes of our
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
(c) The Balance Sheet, the statement of Profit and Loss, 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 statement of Profit and
Loss, and the Cash Flow statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March,2013 taken on record by the Board of
Directors, none of the directors Fost r V.N.G. NATH ASSOCIATES is
disqualified as on 31 March,2013 from being Chartered Accountants.
appointed as director in terms of Section 274(1) (g) of Gopinath M.S.
Komatrhaep Aaclat.yam Partner
30th May, 2013 Membership No. 200608
Firm Regn. No. 7159 S
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITORS'' REPORT OF EVEN
DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2013 OF
VEENA TEXTILES LIMITED
On the basis of such checks as we considered appropriate and In terms
of the information and explanations given to us, we state that.
i. (a) The Company has generally maintained proper records showing
particulars, including quantitative details and situations of fixed
(b) As explained to us, fixed assets, according to the practice of the
company, are physically verified by the management at reasonable
intervals in phased verification programme which in our opinion is
reasonable, looking to the size of the company and the nature of its
business. According to the information and explanations give to us,
discrepancies noticed on physical verification have been adjusted in
the books of account.
(c) The Company has not disposed any fixed assets during the year.
ii (a) As explained to us, inventories have been physically verified
during the year by the management.
(b) The produces explained to us, which are followed by the management
for physical verifications of inventories, are in our opinion
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 the inventory records of the
company, we are of the opinion that, the Company is maintaining proper
records of its inventory, 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 neither granted nor taken any loans secured or
unsecured to /from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act 1956.
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. During the course of our previous
assessment, no major weakness in internal control had come to our
v. To the best of our knowledge and belief and according to the
information and explanations given to us, there were no contracts or
arrangements, particulars of which needed to be entered in the Register
maintained under Section 301 of the Companies Act,1956.
vi. The Company has not accepted any deposits from public during the
year within the meaning of section 58A of the Companies act, 1956 and
the rules framed there under.
vii. In our opinion, the Company though not having internal audit
system but has adequate internal control commensurate with its size and
nature of its business.
viii. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956, without carrying out a detailed examination, and are of the
opinion that prima facie the prescribed accounts and records have been
ix. (a) According to the records of the Company it has been regularly
depositing undisputed statutory dues like
Investor Education and and protection Fund, income Tax, Sales Tax,
Wealth Tax, Custom duty, Service Tax, Central Excise duty and Cess and
other statutory duties with appropriate authorities. 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 2013 for a
period more than six months from the date they become payable.
(b) On the basis of our examination of the documents and records, there
are no disputed statutory dues which have not been deposited with the
appropriate authorities as at 31st March,2013.
x. (i) The accumulated losses at the end of the financial year has
exceeded its 50% of Net worth.
(ii) There is cash loss of Rs.0.94 lacs during the year and there is
cash loss Rs.10.75 during the financial year ended 31.03.2012.
xi. The Company has not repaid the dues to the financial
Particulars Amount in Lacs Period from Which
IIBI 157.77 1996
xii. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of Shares,debentures
or any other Securities.
xiii. The provisions of any special statue applicable to chit
fund/nidhi/ mutual benefit fund / societies are not applicable to the
xiv. The company is not dealing or trading in shares, securities
debuntures and other investments.
xv. 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
xvi. On the basis of the records examined by us , and the information
and explanations given to us the company has not obtained any term loan
during the year.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
xviii. According to the information and explanations given to us and
the records examined by us, during the year, the company has not made
preferential allotment of shares to parties and companies covered in
the Register maintained under Section 301 of the Companies Act, 1956.
xix. On the basis of the records and documents examined by us, the
company has not issued any debentures during the year ;
xx. The Company has not raised any money by public issue, during the
xxi. In our opinion and according to the information and explanations
given to us, no material fraud on or by the company has been noticed or
reported during the course
For V.N.G. NATH ASSOCIATES of our audit.
Membership No. 200608
30th May, 2013 Firm Regn. No. 7159 S