We have audited the accompanying financial statements of FILATEX
FASHIONS LIMITED. Which comprise the balance sheet as at March 31,
2015, and the Statement of Profit and Loss for the year then ended
March 2015. Cash Flow Statement and a summary of significant accounting
polices and other explanation information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors 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 principles generally accepted in
India. Including the Accounting Standards specified under Section 133
of 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 the
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 for error.
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 accountants 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 conducted our audit in accordance with the Standards on auditing
specified under Section 143(10) 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 misstatement. 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 consider internal
financial controls 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. An audit
also includes evaluating the appropriateness of 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 financial statements.
In our opinion and to the best of our information and according to the
explanations given to us, the 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
a) in the case of the Balance Sheet of the Company as at 31 March 2015;
b) in the case of the statement of Profit and Loss, of the profit for
the year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Reportprder, 2015 issued by
the Central Government of India in terms of sub-section (11) of section
143 of the Act (hereinafter referred to the other) and on the basis of
such checks of the books and records of the company as we considered
appropriate and according to the information and explanations given to
us, 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 obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
c. The balance sheet, statement of profit and loss and dealt with by
this Report are in agreement with the books of account;
d. In our opinion, the aforesaid financial statement comply with the
Accounting Standards under section 133 of the Companies Act, 2013 read
with the rule 7 of 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 Companies
f. With respect of the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and
Auditors), 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 financial statements.
ii) In our opinion and as per the information and explanation provides
to us, the Company has not entered into any long term contracts
including derivative contracts, requiring provision under applicable
laws or accounting standards, for material foreseeable losses, and
iii) There has been no delay in transferring the amounts, required to
be transferred, to the Investor Education and Protection Fund by the
ANNEXURE referred to in our report of even date
Re : FILATEX FASHIONS LIMITED ( THE COMPANY)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details
and situation of fixed assets.
(b) All the assets have been physically verified by the management
during the year No material discrepancies were notice on such
(ii) (a) The inventories have been physically verified during the year
by the management in our opinion, the frequency of verification is
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As per
the information and explanation given to us, no material discrepancies
were noticed on physical verification.
(iii) As informed to us, the company has not granted any loans, secured
or unsecured, to companies, firm or other parties covered in register
maintained under section 189 of companies act.
(iv) In our opinion and according to the information and explanations
given to us, there exists and adequate internal control system
commensurate with the size of the company and the nature of its
business, with regard to purchase of fixed assets and purchase of goods
and service. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control system
of the company.
(v) The Company has not accepted any public deposits during the year
under consideration: therefore there is no requirement to the company
to comply with the provision of sections 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the Companies (acceptance of
(vi) To the best of our knowledge and explanation given to us, the
central Government has not prescribed maintenance of Cost Records under
Sub-Section (1) of Section 148 of the Companies Act 2013.
(vii) a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including income tax and other
material statutory dues applicable to it.
Further since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956.
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
b) According to the information and explanations given to us, there are
arrears of undisputed amounts payables in respect of income tax, as at
31.03.2015 for a period of more than six months from the date they
Assessment Year Amount (Rs.)
c) According to the information and explanations given to us, there are
dues of memos tax which have not been deposited on account of dispute.
The assistant commissioner of income-tax raised a demand for
Rs.36,79,565/- for the assessment year 2012-2013, order dated
25/03/2015. Against this order an appeal was filed with commissioner of
income-tax (Appeals)-V date 29/04/2015.
Viii) The Company does not have accumulated losses as at 31.03.2015 and
has not incurred any cash losses during the financial year ended on
date and previous year.
ix) In our opinion and according to the information and explanations
given to us, the company has not borrowed any sums from financials
institution, bank or debentures holders.
x) According to the information and explanation given to us. the
company has not given guarantees for loans taken by others form banks
or financial institutions.
xi) According to the information and explanation given to us, the
company has not raised any 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
course of our audit.
for NG Rao & Associates
CA. G. Nageswara Rao
Date : 20.05.2015