1. We have audited the attached Balance Sheet of M/s Riba Textiles
Limited as at 31.03.2010, Profit and Loss Account and Cash Flow
Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. An audit
includes examining, on the test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by managements, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub section (4A) of
section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in paragraphs 4 and 5 of the order.
4. Further to our comments in the Annexure referred to in para 3 and,
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
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, Profit and Loss account and Cash Flow Statement
and dealt with by this report are in agreement with the Books of
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement and dealt with by this report, comply with the
accounting standards referred to in section 211 (3c) of the companies
e) On the basis of written representations received from the directors,
as on March 31, 2010, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31,2010
from being appointed as a director in terms of section 274(1) (g) of
Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information
required by the companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India.
i) In the case of Balance Sheet, of the State of the affairs of the
Company, as on 31.03.2010.
ii). In the case of the Profit and Loss Account, of the profit of the
company for the year ended on 31.03.2010;
iii) In the case of the Cash Flow Statement, of the profit of the
company for the year ended on 31.03.2010.
Annexure referred to in paragraph (3) of our report of even date Riba
1. The Company has maintained proper records to show full particulars,
including quantitative details and situation of its fixed assets. The
fixed assets have been physically verified by the management during the
year and no material discrepancies have been noticed on such
verification. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the company and
the nature of its business.
2. The management has conducted physical verification of inventory at
reasonable intervals. The procedures of 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. The
company is maintaining proper records of inventory except for work in
progress, which has been determined on the physical verification at the
year end. No material discrepancies in inventory were noticed on
3. As informed to us, the company has neither granted nor taken any
loan, secured or unsecured from companies, firms or other parties
covered in the register maintained under section 301 of the companies
4. In our opinion and according to the 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, for the purchase of inventory and fixed assets and for the
sale of goods. Accordingly, the issue of continuing failure to correct
major weakness in internal control in these areas does not apply.
5. According to the information and explanations provided by the
management, there are no transactions that need to be entered into the
register maintained under section 301 and exceed the value of Rupees
5.00 lacs in respect of any one party in the financial year.
6. The company has not accepted any deposits from the public within
the meaning of section 58A of the companies Act, 1956 and the rules
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have been informed that the Central Government has not
prescribed maintenance of cost records under section 209 (1) (d) of the
companies Act, 1956, in respect to the companys products.
9. According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including, investor
education and protection Fund, Employees State Insurance, Income- tax,
Sales-Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other
statutory dues applicable to it with die appropriate authorities.
According to the information and explanations given to us there are no
undisputed amounts payable in respect of Income Tax, Wealth tax, Sales
Tax, Custom duty and Excise duty outstanding as at 31st March2009 for
a period of more than Six Months from the date they became payable.
10. According to the records of the company, there are no dues
outstanding of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Excise
Duty, Cess on account of any dispute.
11. The company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current preceding
12. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to bank during the year.
13. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
14. In our opinion and according to the information and explanations
given to us, the nature of activities of the company does not attract
any special statute applicable to chit fund, nidhi/mutual benefit fund
15. In respect of dealing/trading in securities and other investments,
in our opinion and according to the information and explanations given
to us, proper records have been maintained of the transactions and
contracts and timely entries have been made therein. No securities have
been held by the company, at the year-end.
16. Based on the audit procedure applied by us & according to the
information & explanations provided by the management, the term loans
taken by the company during the year havebeen applied for the purpose
for which the loans were obtained.
17. According to the information and explanations given to us, the
company has not given any guarantee for loans taken, by others.
18. We have been informed by the management that the funds raised on
short-term basis have not been used for long-term investment and vice
19. The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the companies Act, 1956.
20. The company has not raised any money through a public issue during
21. Based upon the audit procedure performed by us for expressing our
opinion on these financial statements and information and explanations
given by the management, we report that no fraud on or by the company
has been noticed or reported during the course of our audit.
Place: Panipat For Midha & Associates
Date: 09.08.2010 Chartered Accountants