We have audited the accompanying financial statements of SHRI BHOLANATH
CARPETS LIMITED FORMERLY KNOW BIL CONTINENTAL LTD. which comprise the
Balance Sheet as at March 31,2015, the Statement of Profit and Loss and
the statement of cash flow statement for the year then ended and a
summary of significant accounting policies and other explanatory
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance of the company in accordance with the accounting
principles generally accepted in India including Accounting Standards
referred to in Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility includes the
design, implementation and maintenance of internal controls 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 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 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.
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 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 aforesaid financial statements give the
information required bythe 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 case of Balance Sheet, of the state of affairs of the Company as
at March 31,2015; and
b) In the case of the Statement of profit and loss, of the profit for
the year ended on that date.
c) In the case of the Statement of cash flow for the year ended on that
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1 As required by the Companies (Auditor''s Report) Order,2015, issued by
the Central Government of India in term of sub-section (11) of section
143 of the Companies Act,2013, we give in the Annexure a statement on
the matters specified in the paragraphs 4 and 5 of the order.
2 As required by section 143(3) of the Act, we report that:
a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
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 those
books and proper returns adequate for the purposes of our audit have
been received from branches not visited by us.
c) The Balance Sheet ,the statement of Profit & Loss Account and
Statement of Cash Flow dealt with by this report are in agreement with
the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and
Statement of cash flow dealt with by this report comply with the
Accounting Standards referred to in 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,
we report that none of the directors is disqualified as on 31ST MARCH,
2015 from being appointed as a director in terms of Section 164(2) of
ANNEXURE TO THE AUDITORS REPORT
M/s. SHRI BHOLANATH CARPETS LIMITED FORMERLY KNOW BIL CONTINENTAL
1 a) As pe the Explanation provided by manangement the records of Fixed
Assets are under prepration.
b) The fixed assets have not been physically verified during the year
by the management
c) Based on scrutiny of the records of the company and the information
and explanations received by us, we report that there was no sale of
fixed assets during the financial year ended 31st March, 2015
substantial or otherwise. Hence the question of reporting whether the
sale of any substantial part of fixed assets has affected the going
concern of the company does not arise.
2 a) The inventory of the company has been physically verified during
the year by the management. In our opinion the frequency of verification
b) In our opinion and according to the information and explanations
given by the management, the procedures followed are reasonable and
adequate in relation to size of the company and nature of its business.
c) In our opinion the company is maintaining proper records of
inventory. As explained to us, no material discrepancies were noticed
on physical verification of inventory as compared to the book records.
3 In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under Section 189 of the companies act, 2013;
a. The company has not taken loans.
b. In respect of loan taken / granted by the company, the principal is
repayable on demand.
There are no overdue amounts in respect of loan taken / granted by the
4 In our opinion and according to information and explanations given to
us, there are 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.
5 Based on the audit procedures applied by us and the information and
explanations provided by the management, we are of the opinion that
there were no transactions during the year that need to be entered in
the register maintained under section 189 of the the Companies Act,
6 The company has not accepted any deposits from the Public
7 In our opinion the company has an adequate Internal Audit System
commensurate with the size and nature of its business.
8 We have been informed by the management, no cost records have been
prescribed under Section 209(I)(d) of the Companies Act, 1956 in
respect of products manufactured by the Company.
9 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,
Employee''s State Insurance, Income tax, Sales Tax, Wealth Tax, Custom
duty, Excise duty, cess and other statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of income tax, wealth tax, sales
tax, custom duty and excise duty were outstanding as at 31ST MARCH,
2015 for a period of more than six months from the date they became
c) According to the records of the company there are no dues of sales
tax, income tax, customs tax/wealth tax, excise duty/cess, which have
not been deposited on account of any dispute.
10 The company has not incurred cash loss in current year and preceding
Financial year, so provision of clause is not applicable.
11 According to information and explanations given to us and on the
basis of our audit, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution, bank or
12 According to the records of the company, the company has not granted
any loans and advances on the basis of security byway of pledge of
shares, debentures or other securities.
13 In our opinion company is neither a chit fund nor a nidhi/mutual
benefit society. Hence in our opinion Para -4(xiii) of the Companies
(Auditors'') Report Order, 2003 as ameded by 2004 is not applicable.
14 As per the records of the company and according to information and
explanations given to us by the management, company has no earned
profit in delivery based sale & purchase of equity shares of listed
15 As per the records of the company and according to information and
explanations given to us by the management, the company has not given
any guarantee for loans taken by others from bank or financial
16 The Company has not obtained any term loan during the period under
17 According to information and explanations given to us, and on
overall examination of the Balance Sheet of the Company, we are of the
opinion that no funds raised on short term basis have been used for
long term investment by the company.
18 As per the records of the company and according to information and
explanations given to us, 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.
19 As per the records of the company, the company has not issued any
20 The company has not raised any money by public issues during the
period covered by our audit report.
21 In our opinion and according to information and explanations given
to us, no fraud on or by the company have been noticed or reported
during the course of our audit.
For O.P. TULSYAN & CO.
DATE: 30/05/2015 O.P.TULSYAN