We have audited the accompanying financial statements of RIBA TEXTILES
LIMITED (the company), which comprise the Balance Sheet as at 31
March 2015, the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statement
The Company''s Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 (the Act) with respect to
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 the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, that were operating eff
ectively for 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 or 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 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
We 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 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
considers internal financial control relevant to the Company''s
preparation of the financial statements that give 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 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
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 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 March 31, 2015;
b) in the case of the Statement of Profit and Loss Account, of the
Profit for the year ended on that date;
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on the other Legal and regulatory Requirements
1. 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 section 143 of the Companies Act 2013, We give in
the Annexure statement on the matters specified in paragraph 3 & 4 of
2. 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 account as required by law have been
kept by the Company so far as appears from our examination of those
c) the Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
d) in our opinion, the aforesaid 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 representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor''s Report
and to our best of our information and according to the explanations
given to us:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
iii. No amount is required to be transferred to the Investor Education
and Protection Fund by the Company as on 31 March, 2015.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of RIBA TEXTILES LIMITED on the accounts of the company
for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) In respect of Fixed Assets:-
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of information available.
(b) As explained to us, fixed assets have been physically verified by
the management reasonable intervals; no material discrepancies were
noticed on such verification.
(c) During the year Company has sold/discarded assets under the head
Plant & Machinery WDV as on 01/04/2014 of Rs 4.02 Lac (Original Cost Rs
233.80 lac and accumulated depreciation Rs 229.78 lacsold at Rs 3.34
Lac at a loss of Rs. 0.77 Lac. Loss on sale/discard of fixed assets has
been recognized in profit and loss account.
In our opinion and according to the information and explanations given
to us, no substantial part of fixed asset has been disposed off during
the year and therefore does not affect the going concern assumption.
(ii) In respect of its inventories:
(a) As explained to us, the inventories of finished and semi- finished
goods and raw material at works, Godown was physically verified during
the year by the management. In respect to stores and spares parts, the
company has programme of verification of stocks, hence the stock in
trade are only reconciled/verified by the management at reasonable
(b) In our opinion and according to the information and explanations
given to us, the procedure for verification of demat stock followed by
the management is reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its stocks. No
discrepancies have been noticed on verification of stocks as compared
to book records.
(iii) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, 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. Consequently, the provisions of clauses iii(a)
and iii(b) of the order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and for the
sale of goods and services. During the course of our audit, no major
instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
(v) In our opinion, and according to the information and explanation
given to us, the company has not accepted any deposits; hence, clause
(v) is not applicable to the company. Accordingly, directives issued
by the Reserve Bank of India and the provisions of section 73 to 76 or
any other relevant provisions of the Companies Act and the rules framed
there under are not applicable.
(vi) The Company is not required to maintain cost records pursuant to
the Rules made by the Central Government for maintenance of cost
records under sub-section (1) of section 148 of the Act.
(vii) (a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Employees'' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Duty of Custom, Duty of Excise,
Value added tax, cess to the extent applicable and any other statutory
dues have generally been regularly deposited with the appropriate
authorities. According to the information and explanations given to us
there were no outstanding statutory dues as on 31st of March, 2015 for
a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, sales tax, wealth tax,
service tax, duty of customs, duty of excise or value added tax or cess
which have not been deposited on account of any disputes.
(c) Company does not have any amount required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
(viii) The Company does not have any accumulated loss at the end of the
financial year and has not incurred cash losses in the financial year
and in the financial year immediately preceding such financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by other from bank
or financial institutions.
(xi) According to the information and explanations given to us, the
Company has not raised any term loans 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
For Midha & Khuranna,
Membership No. : 017912