Mar 31, 2014
We have audited the accompanying financial statements of NYLOFILS INDIA
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and 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 Statements:
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 sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 15th September 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013. 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.
Auditor''s Responsibility:
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 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 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 accounting policies used and the reasonableness of the accounting
estimates made by 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.
Opinion
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
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Profit and Loss Statement, of the loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2) 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 purpose 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
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013.
e) on the basis of written representations received from the Directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act,1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
As required by the Companies'' (Auditor''s Report) Order, 2003 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were considered
appropriate we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the management
during the year. We are informed that no material discrepancies were
noticed by the management upon such verification
The Company has sold substantial part of its Factory Building and
Machinery in the Financial Year 2003-04, with
c) an intention to discontinue its Manufacturing Activity. It is stated
by the Management that the trading activity will be continued.
2. The Company does not hold any inventories. Hence, the Clause (ii) of
the order is not applicable.
3. a) The Company has taken loans from 1 party being companies, firms
or other parties covered in the Register, maintained under Section 301
of the Companies Act, 1956. The balance outstanding during the year
being 2.25 lakhs. The company has not granted any loans to companies,
firms or other parties covered in the register, maintained under Section
301 of the Companies Act, 1956.
b) The rate of interest and other terms and conditions of loans
taken/given by the company are prima facie not prejudicial to the
interest of the company.
c) The payment of principal amount and interest, if applicable are also
regular.
d) There are no overdue amounts of more than one lakh.
4 There are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to
purchase of fixed assets and sale of goods. In our opinion, there is no
continuing failure to correct major weaknesses in internal control.
5 a) The Company has not entered into any transactions with any party,
that needs to be entered in the register maintained under Section 301
of the Companies Act, 1956. We are informed that the said registers
are appropriately maintained.
6 The company had not accepted any deposits from public within the
meaning of Section 58A and Section 58AA of the Companies Act 1956
7 Neither the company''s paid-up capital and Free Reserves nor does its
turnover warrant any internal audit system.
8 The company is not required to maintain cost records as prescribed in
Sec 209(1)(d) of the companies act,1956
9 a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employees'' state insurance, income-tax, sale tax,
wealth tax, customs duty, excise duty, cess and other material
statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income- tax, wealth-tax,
sales-tax, customs duty, excise duty and cess are in arrears as at 31st
March, 2014 for a period of more than six months from the date they
became payable.
10 The Company has accumulated losses amounting to Rs.5,28,11,181.66 as
at the end of the Financial Year which is more than its net worth and
has incurred cash losses in the current financial year and in the
immediately preceding financial year.
11 The company has not defaulted in repayment of its dues to banks and
financial institutions. The Company has not issued any debentures.
12 The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures or other securities.
The provisions of any Special Statute applicable to Chit Fund, Nidhi or
Mutual Benefit Fund / Societies are not
13 applicable to the Company.
14 The Company is not dealing or trading in shares, securities and
debentures.
15 According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16 The Company has not taken any term loan during the year.
17 The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
18 The funds raised on short-term basis have not been used for
long-term investment and vice-versa.
19 As the Company had not issued any debentures the issue of creation
of securities does not arise.
20 The Company has not raised any money by way of public issues during
the year.
21 On the basis of our examination and according to the information and
explanations given to us, no fraud, on or by the Company, has been
noticed or reported during the year.
For R A O & K U M A R,
Chartered Accountants,
FRN 03089S
(CA Anirban Pal)
Partner.
M.No. 214919
Place : Visakhapatnam
Date: 26.05.2014
Mar 31, 2012
Not Available
Mar 31, 2010
We have examined the attached Balance Sheet of M/S NYLOFILS INDIA .LTD
RAJAMUNDRY, as at 31st March 2010, and the annexed Profit & Loss
Account for the year ending on that date and report that these
financial statements are the responsibility of the CompanyÃs Management.
Our reconcilability is to express are opinion on these financial
statements based on our audit.
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 financial statements
and free of material misstatement, An audit includes exiling, on a test
basis, evidence supporting the amounts and disclosure in the financial
statement. An audit also includes include assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the over all financial statement presentation we believe that
our audit provinces a reasonable basis for our opinion:
1. As required by the companies (Auditors Report ) Order, 2003 issued
by the company Law Board in terms of Section 227(4a) of the companies
Act, 1956, we enclosed in the annexure a Statements on the matters
spec field in the paragraph 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to in Paragraph
above, 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
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 the
books.
c. The Balance Sheet and Profile & Loss Account d55nar57thg^rt are in
agreement wÃh the Books of Account.
d) in our opinion and based on information and , nations given to jus
rone of as on 31st March 2010 from being appointed as Directors in
terms 01 owes, vy/ 274 of the Companies Act, 1956.
e) In our opinion the Balance Sheet and Profit and Loss Account dealt
with by this report comply with, the accounting statements referred to
in sub section (3)c of section 211 of the Companies Act, 1956
F) in our opinion and to the best of our information and according to
expiations give to us, the said Balance Sheet and profit and loss
Account read with the significant accounting policies and notes there on
give the information required by the companies Act, 1956 in the Manner
so required and:
g) In our opinion and to te best of our information and according to
the explanations given as at 31st March 2010; and Balance Sheet and the
Profit & Loss account read together with the notes thereon give a true
and fair view;
i) in the cased of the Balance Sheet of the State of Affairs of the
company as at 31stg march 2010; and
ii) in the case of profit and Loss Account, the LOSS of the Company for
the year ended on that date
ANNEXURE TO AUDITORSÃ REPORT
As required by the Companies (Auditors Report) order, 2003.and
according to the information and explanations given to during the
course of the audit and on the basis of such cheeks as were considered
appropriate we report that:
1. a) The Company has maintained proper records showing fell
particulars inducing quantitative details and situation of fixed
assets.
b) The Fixed asserts have been physically verified by the management
during the year. we are informed that no Material discrepancies were
noticed by the management upon such verification.
c. The Company has sold substantial part of its Factory Building and
Machinery in the Financial Year 2003-041 with a intention to
discontinue is Manufacturing Activity it is stated by the Management
that the Trading activity will be continued.
2 a) The Company does not hold any inventories. Hence. the Clause (ii)
of the order is nut applicable.
3.a) The Company has not take any loans from companies Firms or other
parties covered in the Register maintained under section 301 of the
Companies Act1956. The Company has not granted any loans to
companies, firms or there parties covered in the Register, maintained
under section 301 of the companies act, 1956
b) The rate of interest and other terms and conditions of loans given
by the company are prima facie no. prejudicial to the interest of the
company.
c) The payment of principal amount and interest are also regular.
d) There are no overdue amounts of more than one lakh.
4. There are adequate internal control producer commensurate with the
size of the Company and the nature of its business with regard to
purchase on fixed assets and sales of goods. In our opinion, there is
no continuing failure to correct major weakness in internal control.
5. The Company has not entered into any transactions that need to be
entered in the register maintained under sec301 of the companies Act,
1956
6.The Company had not accepted any deposits from public within the
meaning of sec 58A and Sec 58AA of the companies act1956
7 The company's not paid up capita, nor does its turnover warrant any
internal, Audi, system.
8 The company is no, quire to maintain coos, records as prescribed in
Sec 209(1Ãd, of ,he companies ac.,956
9 a0 Undisputed Statutory Dues including Provident Fund, Investors
Education & Protection Fund, Employees State Insurance. Income Tax,
Sales Tax, Wealth Tax, Services Tax, customs Duty, Excise Duty, and
cess have been regularly deposited with the appropriate authorities
though there has been allay in a few cases.
b) The Company does not have any undisputed Income Tax, Sales Tax,
Customs Duty, Excise Duty and other Statutory dues payable out standing
as on 31.03.2010 for more than six months from the date they became payable.
10 The Company has accumulated losses to the tune ofRS499 546
industrial company within financial year and in the immediately
preceding Year. The company is a sick industrial Company within the
meaning of Clause (o) of Sub-section (1) of section 3 of sick
industrial companies (Special Provisions ) Act, 1985. The company has
made an Application with BIFR, Ministry of Finance Government of India.
11 The company does not have any dues to banks and no debentures are
issued.
13. The provisions of any special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund Societies are not applicable to the
company.
14. The Company is not dealing or trading in shares, securities and
debentures. However in respect of investments made in shares. It has
maintained proper records of the transactions and has made entries
therein. The Investments are held in its own name.
15. According to the information and explanation s given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. The Company has not taken any term loan during the year
17. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
18. funds raised on shooter basis have no, been used talon. tempt
investment and vice-versa.
19 The company has not raised any capital by way o, debentures.
20 The Company has nonbiased any money by way to public issues During
the year.
For RAO & KUMAR,
Chartered Accountants
(V.V.RAMMOHAN)
Partner,