TUNI TEXTILE MILLS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members of
TUNI TEXTILE MILLS LIMITED
1. We have audited the attached Balance Sheet of TUNI TEXTILE MILLS LIMITED
(herein after referred to as "the company") as at 31st March 2012, the
Statement of Profit and Loss and the Cash Flow Statement for the year ended
on that date, annexed thereto, which we have signed under reference to this
report. These financial statements are the responsibility of the company`s
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 misstatement. An audit includes examining, on test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles and
significant estimates made by the management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor`s Report) Order, 2003 (hereinafter
referred to as `the CARO 2003`) issued by the Central Government of India
in terms of section 227(4A) of the Companies Act, 1956, (hereinafter
referred to as `the Act`) we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we report
that:
(i) 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;
(ii) 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;
(iii) 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;
(iv) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3-C) of section 211 of the Act;
(v) based on the representation made by the directors of the company and
information and explanation given to us, none of the directors is prima-
facie disqualified as on 31st March, 2012, from being appointed as a
director in terms of clause (g) of sub section (1) of section 274 of the
Act on the said date;
(vi) in our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with Significant
Accounting Policies and notes on 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 Balance Sheet, of the state of affairs of the company as
at 31st March, 2012;
b) in the case of Statement of Profit and Loss, of the profit for the year
ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year ended
on that date.
For and on behalf of
R. S. AGRAWAL & ASSOCIATES
Chartered Accountants
(Registration no. 100156W)
Anuja Dedhia
Place: Mumbai Partner
Date : August 21, 2012 Membership No. 123589
Annexure referred to in Paragraph (3) of Auditors` Report of even date on
the Accounts for the year ended 31st March, 2012 of Tuni Textile Mills
Limited on the basis of such checks as we considered appropriate and in
terms of the information and explanation given to us, we state that:
(i) in respect of fixed assets:
a) the company has generally maintained records showing particulars,
including quantitative details and situation of its fixed assets;
b) we have been informed that the management has, at reasonable intervals
during the year, physically verified major portion of the fixed assets. No
material discrepancies, as represented to us, were noticed on such
verification; and
c) during the year the company has not disposed off a substantial part of
its fixed assets which affects the going concern status of the company;
(ii) in respect of Inventory:
a) as explained to us, inventories have been physically verified during the
year by the management. In our opinion, the frequency of verification is
reasonable;
b) the procedures, as explained to us, of physical verification of
inventories followed by the management are, in our opinion; reasonable and
adequate in relation to the size of the company and the nature of its
business; and
c) the company, for inventory, has maintained proper records. No material
discrepancies, as informed to us, have been noticed on physical
verification of stock as compared to book records;
(iii) a) the company has not granted, during the year, any secured or
unsecured loans to the companies, firm or other parties covered in the
register maintained under section 301 of the Act, therefore provisions of
clause 4(iii) (a) to (d) of the CARO, 2003 are not applicable to the
company; and
b) the company has taken, during the year, unsecured loans from the
companies, firm or other parties covered in the register maintained under
section 301 of the Act. The maximum amount involved during the year was Rs.
900,458.04 from 2 parties. The year end balance was `Nil`.
c) The above unsecured loan taken was free of interest and in our opinion
the other terms and conditions are not prima facie prejudicial to the
interest of the company.
(iv) in our opinion, there are generally 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 and services. During the course of audit, no major weakness has
been noticed in these internal control systems;
(v) a) to the best of our knowledge and belief and representations given
to us, we are of the opinion that the particulars of the contracts or
arrangements referred to in section 301 of the Act have been entered in the
register maintained under section 301 of the Act; and
b) in our opinion, there were no transactions, made in pursuance of
contracts or arrangements entered in the register maintained under section
301 of the Act, exceeding the value of Rs. 5,00,000 in respect of any party
during the year.
c) have been made at prices which are resonable having regard to the
prevailing market prices at the relevant time were such market prices are
available.
(vi) in our opinion, the company has not accepted any deposit from the
public; within the meaning of section 58A and 58AA of the Act and the Rules
framed thereunder.
(vii) the company is required to have an internal audit system as the
company`s paid up capital and reserves at the commencement of financial
year exceeds Rs. 50,00,000 and its average annual turnover of preceding
three years also exceeds Rs. 5,00,00,000 however, the company, during the
year, had no such internal audit system;
(viii) we have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government, for the
maintenance of cost records under section 209(1)(d) of the Act, and are of
the opinion that prima facie the prescribed records have been made and
maintained by the company;
(ix) In respect of Statutory Dues:
a) according to the information and explanations given to us, the company
is generally regular in depositing with the appropriate authorities
undisputed current statutory dues including provident fund, investor
education and protection fund, employees` state insurance, income tax,
sales tax, wealth tax, custom duty, excise duty, cess and other material
statutory dues applicable to it. There are no arrears except Rs. 4743/-
towards Labour welfare Fund as at 31st March, 2012 for the period of more
than six months from they became payable; and
b) according to the information, the dues in respect of income tax / sales
tax / wealth tax / service tax / custom duty / excise duty / cess that have
not been deposited with the appropriate authorities on account of dispute,
where the disputes are pending, are as under:
Name of Nature of Amount Period to which Due date as per
the Statute dues (Rs.) the amount notice of demand
relates*
Income Tax Act Interest 947334 1995-1996 10.05.2001
Income Tax Act Interest 338640 1996-1997 19.09.2003
Income Tax Act Interest 158134 1997-1998 19.09.2003
* assessment year
* For the above demands, as informed to us, the company has filed waiver
petitions before Chief Commissioner of Income Tax for waiver of interest,
those petitions are pending to be heard; and
* The waiver of above demands has been considered in scheme of
rehabilitation by BIFR;
(x) the company has not incurred cash losses in the year under review and
in the immediately preceding financial year; and its accumulated losses at
the end of the financial year under review are not more than fifty percent
of its networth;
(xi) according to the records examined by us, the company has not defaulted
in repayment of dues to the banks. There are no dues to a financial
institution or debenture holders;
(xii) the company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
therefore, reporting requirement under clause 4(xii) of the CARO 2003 is
not applicable to the company;
(xiii) the company is not a chit fund or a nidhi mutual benefit fund/
society; therefore, reporting requirement under clause 4(xiii) of the CARO
2003 is not applicable to the company;
(xiv) the company is not dealing or trading in shares, securities,
debentures and other investments; therefore, reporting requirement under
clause 4(xiv) of the CARO 2003 is not applicable to the company;
(xv) the company has not given any guarantee for loans taken by others from
bank or financial institutions; therefore reporting requirement under
clause 4(xv) of the CARO 2003 is not applicable to the company;
(xvi) on the basis of the records examined by us, and relying on the
information complied by the company for co-relating the funds raised to the
end use of the term loans, we have to state that, the company has, prima
facie, applied the term loan for the purpose for which they were obtained.;
(xvii) on an overall examination of the balance sheet of the company, we
report that no funds raised on short-term basis have, prima facie, been
used for long-term investment;
(xviii) the company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section 301
of the Act; therefore, reporting requirement under clause 4(xviii) of the
CARO 2003 is not applicable to the company;
(xix) the company has not even issued any secured debentures; therefore
reporting requirement under clause 4 (xix) of the CARO 2003 is not
applicable to the company;
(xx) the company has not raised any money through a public issue during the
year; therefore, reporting requirement under clause 4(xx) of the CARO 2003
is not applicable to the company; and
(xxi) according to the representation made, and to the best of our
knowledge and belief, no fraud on or by the company, has been noticed or
reported by the company during the course of our audit.
For and on behalf of
R. S. AGRAWAL & ASSOCIATES
Chartered Accountants
(Registration no. 100156W)
Anuja Dedhia
Place: Mumbai Partner
Date : August 21, 2012 Membership No. 123589 |