Mar 31, 2018
1. Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of BANNARI AMMAN SPINNING MILLS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
2. Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
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 ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Auditorsâ Responsibility.
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting 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 thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone Ind AS financial statements 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS 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 the 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 standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
4. Opinion
In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone Ind AS 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 Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matters
a) The comparative financial information of the Company for the year ended 31st March, 2017 and the transition date opening balance sheet as at 1st April, 2016 included in these standalone Ind AS financial statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31st March, 2017 and 31st March, 2016 dated 30th May, 2017 and 25th May, 2016 respectively expressed an unmodified opinion on those standalone financial statements, and have been restated to comply with Ind AS. Adjustments made to the previously issued said financial information prepared in accordance with the Companies (Accounting Standards) Rules, 2006 to comply with Ind AS have been audited by us.
Our opinion on the standalone Ind AS financial statements is not modified in respect of this matter.
5. Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, based on our audit 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 it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, 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 Standalone Ind AS financial statements.
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE "A" TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 1(f) under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of BANNARI AMMAN SPINNING MILLS LIMITED ("the Company") as of 31st March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of Management and Directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the criteria for internal financial control over financial reporting established by the respective Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
ANNEXURE "B" TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of plant, property and equipment.
b) Some of the plant, property and equipment were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the plant, property and equipment at reasonable intervals. According to the information and explanation given to us no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land that have been taken on lease and disclosed as plant, property and equipment in the financial statements and the buildings constructed on such leasehold land, whose lease deeds have been pledged as security for credit facilities taken from banks. The lease agreements are in the name of the Company, where the Company is the lessee in the agreement based on the confirmations directly received by us from banks.
ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
iii) The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013.
iv) The Company has not granted any loans hence provisions of Section 185 is not applicable. The Company has complied with the provisions of section 186 of the Companies Act, 2013 in respect of making investments and providing guarantees.
v) According to the information and explanations given to us, the Company has not accepted any deposit during the year hence the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 is not applicable.
vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed accounts and cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii) According to the information and explanations given to us, in respect of statutory dues:
a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Goods and Service Tax, Cess and other material statutory dues applicable to it to the appropriate authorities.
b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Goods and Service Tax, Cess and other material statutory dues in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable.
c) Details of dues of Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Goods and Service Tax and Cess which have not been deposited as on 31st March, 2018 on account of disputes are given below :
Amount Unpaid (Rs. In Lakhs) |
|||||
Name |
Nature |
Forum where |
Period to |
Amount |
|
of |
of |
dispute is |
which the |
involved |
|
Statute |
Dues |
pending |
amount relates |
(Rs. in Lakhs) |
|
Income Tax Act, 1961 |
Income Tax |
CIT Appeals |
Assessment Year onin i o |
37.47 |
29.98 |
2011-12 |
|||||
Central |
Claim for refund |
CESTAT Chennai |
2008-09, 2009-10 |
144.03 |
144.03 |
Excise |
of duty |
2017-18 |
|||
Act, 1944 |
|||||
Central |
CST demand |
High Court - |
2008-09, 2009-10 |
134.15 |
134.15 |
Sales Tax |
on exempted |
Madras |
|||
Act,1956 |
sales |
||||
viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to Banks. The Company has not taken any loans from the financial institutions, Government or has not issued any debentures.
ix) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments). The Company has obtained term loans during the year and the same have been applied for the purposes for which they were obtained.
x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi) In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Sections 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Standalone Financial Statements as required by the applicable accounting standards.
xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the CARO 2016 Order is not applicable to the Company.
xv) In our opinion and according to information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with them and hence provisions of Section 192 of Companies Act, 2013 are not applicable.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm''s Registration No. 117366W/W-100018)
C R Rajagopal
Coimbatore Partner
27th June 2018 (Membership No. 23418)
Mar 31, 2015
We have audited the accompanying financial statements of Bannari Amman
Spinning Mills Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
2. Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
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
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 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.
3. Auditors' Responsibility
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
there under.
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 misstatements.
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 a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. 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.
4. Opinion
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, of the state of affairs of the Company as
at March 31, 2015, and its profit and its cash flows for the year ended
on that date.
5. Report on Other Legal and Regulatory Requirements
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 a statement on the matters specified in the paragraphs 3 and 4
of the order, to the extent applicable.
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 it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
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 the written representations received from the
directors as on March 31, 2015, 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
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 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 as referred to in Note
30 to the financial statements.
ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31 March 2015, we report that:
I. a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner. In
accordance with this programme, certain fixed assets were verified
during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the Company and the nature
of its assets.
ii. a. Inventories have been physically verified during the year by
the management at reasonable intervals.
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. In our opinion and on the basis of our examination of the records
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
iii. 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 listed in the register maintained under section 189 of the
Companies Act, 2013 ('the Act'). Consequently the provisions of Clauses
iii (a) iii (b) and 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 an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and sale of goods and services.
During the course of our audit we have not observed any major weakness
in the internal control system during the course of the audit.
v. The Company has not accepted any deposits from the public.
vi. As per information & explanation given by the management
maintenance of cost records has been prescribed by the Central
Government and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained under section 148(1)
of the Companies Act, by the Company.
vii. a. According to the information and explanations given to us and
on the basis of our examination of the records of the Company, the
undisputed statutory dues including provident fund, Employee's State
Insurance, Income tax, Sales tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other statutory
dues have been regularly deposited during the year by the Company with
the appropriate authorities.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, Employee's
State Insurance, Income tax, Sales tax, wealth tax, service tax, duty
of customs, duty of excise, value added tax, cess and other material
statutory dues were in arrears as at 31 March 2015 for a period of more
than six months from the date they became payable.
Name of Nature of Amount Period to which the
the Statue the Dues (Rs. in
Lakhs) amount relates
Central Sales Sales Tax 87.55 Assessment year 2009-10
Tax Act, 1956 and Penalty
Central Sales Sales Tax 46.60 Assessment year 2008-09
Tax Act, 1956
Income Tax Income Tax 0.11 Assessment year 2011-12
Act, 1961
Central Excise Excise Duty 69.61 December 2008 to July
2009
Central Excise Excise Duty 46.84 September 2010
to October 2011
Central Excise Excise Duty 0.38 October 2011
to October 2012
Service Tax Service Tax 3.20 April 2011 to
October 2011
Name of the Statute Forum where dispute is pending
Central Sales Tax
Act, 1956 High Court of Madras, Chennai
Central Sales Tax
Act, 1956 High Court of Madras, Chennai
Income Tax Act, 1961 CIT (Appeals), Coimbatore
Central Excise CESTAT, Chennai
Central Excise Joint Commissioner of Central Excise, Madurai
Central Excise Assistant Commissioner of Central Excise,
Dindugul
Service Tax CESTAT, Chennai
c. According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
viii. The Company does not have any accumulated losses at the end of
the financial year. The company has not incurred cash losses in the
financial year and in the immediately preceding financial year.
ix. The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
x. In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
xi. According to the information and explanations given to us, the term
loans are applied for the purpose for which the loans were obtained.
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 P N RAGHAVENDRA RAO & CO
Chartered Accountants
P R VITTEL
Partner
Coimbatore M No 200/18111
30th May, 2015 ICAI Firm Regn. No: 003328S
Mar 31, 2014
We have audited the accompanying financial statements of M/s. Bannari
Amman Spinning Mills Limited ("the Company"), which comprise the
Balance Sheet as at 31st March 2014, the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended and a summary of
the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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 notified under the Companies
Act, 1956 ("the Act") read with General circular 15/2013 dated 13th
September 2013 of the Ministry of the Corporate Affairs in respect of
section 133 of 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 the
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 depending 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 the internal control relevant to the entity''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 entity''s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the 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 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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 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 it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the 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 the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956 ("the Act") read with General
Circular 15/2013 dated 13th September 2013 of the Ministry of the
Corporate Affairs in respect of section 133 of the Companies Act, 2013.
(e) On the basis of the written representations received from the
directors as on 31st March 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE TO AUDITORS'' REPORT
The Annexure referred to in our report to the members of M/s. Bannari
Amman Spinning Mills Limited ("the Company") on the accounts of the
company for the year ended 31st March, 2014.
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:
1. a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2. a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. 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 listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
b) According to the information and explanations given to us and on the
basis of our examination of the books of accounts, the Company has not
taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
4. 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 payment
for expenses & for sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the company.
5. a) In our opinion and according to the information and explanations
given to us, the particulars of all contracts or arrangements that need
to be entered into the register maintained under section 301 of the
Companies Act,1956 have been so entered.
b) In our opinion and according to the information and explanations
furnished to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted any deposits from the public.
Therefore the provisions of clause 4(vi) of the Companies (Auditor''s
Report) Order, 2003 are not applicable.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
9. a) According to the records, the Company is regular in depositing
with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax,
Wealth tax, Service 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 aforesaid dues were
outstanding as at 31st March, 2014 for a period of more than six months
from the date they became payable.
c) The disputed statutory dues aggregating to Rs. 135.11 Lakhs that have
not been deposited on account of matters pending before appropriate
authority are as under :
Name of Nature of Amount Period to which Forum where
the Statue the Dues (Rs.. In Lakhs) the amount relates dispute is
pending
Central
Sales Sales Tax 87.55 Assessment year
2009-10 High Court
of Madras,
Tax Act,
1956 and
Penalty Chennai
Central
Sales Sales Tax 46.60 Assessment year
2008-09 High Court
of Madras,
Tax Act,
1956 Chennai
Income Tax Income Tax 0.85 Assessment year
2010-11 CIT
(Appeals),
Act, 1961 Coimbatore
Income Tax Income Tax 0.11 Assessment year
2011-12 CIT
(Appeals),
Act, 1961 Coimbatore
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
12. According to the information and explanations given 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.
13. In our opinion, the Company is not a chit fund/nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the order are not applicable to the Company.
14. According to information and explanations given to us, the Company
is not dealing or trading in shares, securities, debentures and other
investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. In our opinion, the term loans have been applied for the purpose
for which they have been raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the no funds raised on short term basis have been used for long
term investments.
18. According to the information and explanations given to us, 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.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. 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 P N RAGHAVENDRA RAO & Co.
Chartered Accountants
P R VITTEL
Partner
Coimbatore
M.No.200/18111
21st May, 2014 ICAI Firm Regn. No. 003328S
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. Bannari
Amman Spinning Mills Limited ("the Company"), which comprise the
Balance Sheet as at 31st March 2013, the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended and a summary of
the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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"). 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 the
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 the 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 the 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. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the 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 31st March, 2013;
(b) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company 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 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 it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the 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 the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE TO AUDITOR''S REPORT
The Annexure referred to in our report to the members of M/s. Bannari
Amman Spinning Mills Limited ("the Company") on the accounts of the
company for the year ended 31st March, 2013.
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:
1. a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2. a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. 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 listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
b) According to the information and explanations given to us and on the
basis of our examination of the books of accounts, the Company has not
taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
4. 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 payment
for expenses & for sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the company.
5. a) In our opinion and according to the information and explanations
given to us, the particulars of all contracts or arrangements that need
to be entered into the register maintained under section 301 of the
Companies Act,1956 have been so entered.
b) In our opinion and according to the information and explanations
furnished to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted any deposits from the public.
Therefore the provisions of clause 4(vi) of the Companies (Auditor''s
Report) Order, 2003 are not applicable.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
9. a) According to the records, the Company is regular in depositing
with appropriate authorities undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income-tax, Sales-tax, Wealth tax, Service tax,
Customs Duty, Excise Duty, Cess and other material statutory dues
applicable to it. According to the information and explanations given
to us, no undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March, 2013 for a period of more than six months
from the date they became payable.
b) The disputed statutory dues aggregating to Rs. 204.04 Lakhs that have
not been deposited on account of matters pending before appropriate
authority are as under :
Name of Nature of Amount
the Statue the Dues (Rs.In Lakhs)
Central Excise Excise Duty 11.59
Act, 1944
Central Excise Excise Duty 55.73
Act, 1944
Central Excise Excise Duty 0.40
Act, 1944
Central Excise Excise Duty 0.93
Act, 1944
Central Excise Excise Duty 0.24
Act, 1944
Central Excise Excise Duty 0.12
Act, 1944
Central Excise Excise Duty 0.03
Act, 1944
NAME Period to which Forum where
the amount relates dispute is pending
Central Excise 7.12.2008 to
7.7.2009 CESTAT, Chennai
Central Excise 7.12.2008 to
6.7.2009 CESTAT, Chennai
Central Excise 1.4.2009 to
6.7.2009 CESTAT, Chennai
Central Excise 1.4.2009 to
6.7.2009 CESTAT, Chennai
Central Excise 14.9.2007 to
30.9.2011 Assistant Commissioner
(Central Excise), Madurai
Central Excise 14.9.2007 to
30.9.2011 Assistant Commissioner
(Central Excise), Madurai
Central Excise 1.10.2011 to
3.10.2012 Assistant Commissioner
(Central Excise), Madurai
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
12. According to the information and explanations given 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.
13. In our opinion, the Company is not a chit fund/nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the order are not applicable to the Company.
14. According to information and explanations given to us, the Company
is not dealing or trading in shares, securities, debentures and other
investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. In our opinion, the term loans have been applied for the purpose
for which they have been raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the no funds raised on short term basis have been used for long
term investments.
18. According to the information and explanations given to us, 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.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. 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 P N RAGAVENDRA RAO & Co.
Chartered Accountants
P R VITTEL
Partner Coimbatore
M.No.200/18111
18th May, 2013 ICAI Firm Regn. No. 003328S
Mar 31, 2012
We have audited the attached Balance Sheet of M/s. Bannari Amman
Spinning Mills Limited as at 31.03.2012, Statement of Profit and Loss
and also the Cash Flow Statement for the year ended on that date
annexed thereto. 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.
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 a 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
I. As required by the Companies (Auditor's 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 furnish below a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
i. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such verification.
c. In our opinion and according to the information and explanations
given to us, the Company has not disposed off substantial part of its
fixed assets during the year.
ii. In respect of its inventories:
a. The inventories have been physically verified by the management. In
our opinion, the frequency of verification is reasonable.
b. 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 is maintaining proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
iii. The company has not granted/taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the company.
v. a In our opinion and according to the information and explanations
given to us, the particulars of all contracts or arrangements that need
to be entered into the register maintained under section 301 of the
Companies Act,1956 have been so entered.
b In our opinion and according to the information and explanations
furnished to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
vi. The Company has not accepted any deposits from the public.
Therefore the provisions of clause 4 (vi) of the Companies (Auditor's
Report) Order, 2003 are not applicable.
vii. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed cost records maintained by the company
pursuant to the Companies (cost accounting records) Rules, 2011
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix. In respect of statutory dues:
a. According to the records, the Company is regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-tax, Sales-tax, Wealth tax, Service tax, Customs
Duty, Excise Duty, Cess and other material statutory dues applicable to
it. According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March, 2012 for a period of more than six months
from the date of they became payable.
b. The disputed statutory dues aggregating to Rs 127.98 Lakhs that
have not been deposited on account of matters pending before
appropriate authority are as under:
Name of Nature of Amount Period to Forum where
the Statute the Dues (Rs in which the dispute is
Lakhs) amount pending
relates
Central Excise Excise Duty 51.59 07.12.2008 to Commissioner of
Act, 1944 rebate 07.07.2009 Central Excise
(Appeals),
Madurai
Central Excise Excise Duty 55.73 07.12.2008 to The CESTAT,
Act, 1944 06.07.2009 Chennai
Central Excise Excise Duty 19.33 07.12.2008 to Commissioner of
Act, 1944 rebate 06.07.2009 Central Excise
(Appeals),
Madurai
Central Excise Excise Duty 1.33 01.04.2009 to Commissioner of
Act, 1944 30.06.2009 Central Excise
(Appeals),
Madurai
x. The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi. In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
xii. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, clause 4(xiii) of the
Companies (Auditor's Report) Order 2003 is not applicable to the
Company.
xiv. In our opinion, the company is not dealing or trading in shares,
securities, debentures and other investments, Therefore, clause 4(xiv)
of the Companies (Auditor's Report) Order 2003 is not applicable to the
Company.
xv. According to information and explanations given to us, the company
has not given any guarantee for loans taken by others from banks or
financial institutions.
xvi. In our opinion, the term loans have been applied for the purpose
for which they have been raised.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the no funds raised on short term basis have been used for long
term investments.
xviii. According to the information and explanations given to us, 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.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any money by way of public issue during
the year.
xxi. In our opinion and 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.
II. Further to the 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
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 dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on 31st March 2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March,
2012 from being appointed as directors in terms of clause (g) of
sub-Section (1) of section 274 of the Companies Act 1956;
f) 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 the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) In the case of the Statement of Profit and Loss of the Loss for
the year ended on that date: and
(iii) In case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
For P N RAGAVENDRA RAO & Co.
Chartered Accountants
P R VITTEL
Partner
Coimbatore M.No.200/18111
30 May, 2012 ICAI Firm Regn. No. 003328S
Mar 31, 2011
We have audited the attached Balance Sheet of M/s. Bannari Amman
Spinning Mills Limited as at 31.03.2011, the Profit and Loss Account
and also the Cash Flow Statement for the year ended on that date
annexed thereto. 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.
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 a 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 management, as well asevaluating the overall financial statement
presentation, We believe that our audit providesa reasonable basis for
our opinion.
I. As required by the Companies. (Auditor's 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 furnish below a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
i In res pect of Its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such verification,
c. During the year, the Company has disposed off substantial part of
plant and machinery. According to the information and explanation given
to us, we are of the opinion that the sale of said part of plant and
machinery has not affected the going concern status of the company.
ii. In respect of its inventories:
a. The inventories have been physically verified by the management. In
our opinion, the frequency of verification is reasonable.
b. 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 is maintaining proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared of the book records.
iii. The company has not granted/taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the company.
v. a In our opinion and according to the information and explanations
given to us, the particulars of all contracts or arrangements that need
to be entered Into the register maintained under section 301 of the
Companies Act.1956 have been so entered.
b In our opinion and according to the information and explanations
furnished to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
vi. The Company has not accepted any deposits from the public.
Therefore the provisions of clause (vi) of the Companies (Auditor's
Report) Order, 2003 are not applicable.
vii. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of accounts relating to
material, labour and other items of cost 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 Companies
Act, 1956 and we are of the opinion, that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the same.
ix. In respect of statutory dues:
a. The Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Income-tax, Sales-tax,
Wealth tax, Service 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, Sales-tax, Wealth
tax, Service tax, Customs Duty and Excise Duty were in arrears as at
31st March, 2011 for a period of more than six months from the date of
becoming payable.
c. The disputed statutory dues aggregating to Rs.139.13 Lakhs that
have not been deposited on account of matters pending before
appropriate authority are as under:
Amount Period to
Name of Nature of Forum where
(Rs. in which the
the Statute the Dues dispute is pending
Lakhs) amount relates
The Commissioner
Income Tax Income
75.79 2004 - 05 of Income Tax
Act, 1961 Tax
(Appeals)
Central
Excise Duty The CESTAT,
Excise Act, 59.09 2009 - 10
Rebate Chennai
1944
The Revision
Central
Excise Duty Authority, Ministry
Excise Act, 4.25 2008 - 09
Rebate of Finance,
1944
New Delhi
x. The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi. In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
xii. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, clause 4(xiii) of the
Companies (Auditor's Report) Order 2003 is not applicable to the
Company.
xiv. In our opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Therefore, clause 4(xiv)
of the Companies (Auditor's Report) Order 2003 is not applicable to the
Company.
xv. According to information and explanations given to us, the company
has not given any guarantee for loans taken by others from banks or
financial institutions.
xvi. In our opinion, the term loans have been applied for the purpose
for which the they have been raised.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the no funds raised on short term basis have been used for long
term investments.
xviii. According to the information and explanations given to us, 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.
xix. The Company has not issued debentures during the year.
xx. The Company has not raised any money by way of public issue during
the year.
xxi. In our opinion and according to the information and explanations
given to us, no fraud by the company has been noticed or reported
during the course of our audit. We have been informed that an executive
had committed a fraud by undervaluing/ misappropriation of goods for a
value of Rs 82.19 Lakhs and Company had taken criminal proceedings
against the executive.
II. Further to the 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
those books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in subsection (3C) of Section 211 of the
Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on 31st March 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March,
2011 from being appointed as directors in terms of clause (g) of
sub-Section (1) of section 274 of the Companies Act, 1956;
f) 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 the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date: and
(iii) In case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
For P N Ragavendra Rao & Co.,
Chartered Accountants
P R Vittel
Partner
M.No. 200/18111
FIRM REGN.No.003328S
Coimbatore
23rd May 2011
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. Bannari Amman
Spinning Mills Limited as at 31.03.2010, the 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.
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 a 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
I. As required by the Companies (Auditors Report) Order 2003 issued by
the Government of India in terms of sub- section (4A) of section 227 of
the Companies Act, 1956, we furnish below a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
i. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets, No material discrepancies were noticed on
such physical verification.
c. The Company has not disposed off substantial part of fixed assets
during the year.
ii. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year.
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
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
iii. The company has not granted/taken any loans, secured or unsecured,
to/from Companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
iv. 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, fixed assets and also for the
sale of goods and services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
v. a, In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that Section: and b. In our
opinion and according to the information and explanations furnished to
us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
vi. The Company has not accepted any deposits from the public.
vii. In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
viii. The Central Government has prescribed maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the Company. We have broadly
reviewed the accounts and records of the Company in this connection and
are of the opinion, that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the same.
ix. In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-tax, Sales-tax, Service tax. Customs
Duty, Excise Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2010 for a period of more than six months from the date of becoming
payable.
b. The disputed due of Excise duty amounting to Rs. 4,24,513/- that
have not been deposited on account of matters pending before
appropriate authority is as under:
Porjod to which
Name of the Nature of the Amount the amont Forum where
Statute Due (Rs. in
Lakhs) dispute is
pending
relates
Central
Excise Act, Excise Duty 4.25 2008-2009 The Revision
Authority
1944 Rebate Ministry of
Finance,
New Delhi
x. The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions or banks.
xii. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society, Therefore, clause 4(xiii) of the
Companies (Auditors Report) Order 2003 is not applicable to the
Company,
xiv. The company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, clause 4(xiv) of the
Companies (Auditors Report) Order 2003 is not applicable to the
Company.
xv. According to information and explanations given to us, the company
has not given any guarantee for loans taken by others from banks or
financial institutions.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were prima facie, applied by the Company during the year for
the purpose for which the loans were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the Company has not utilised short-term funds for
long-term investments.
xviii. During the year, 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.
xix. The Company has not issued debentures during the year.
xx. The Company has not raised any money by way of public issue during
the year,
xxi. In our opinion 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 that causes the financial statements to be materially
misstated.
II. Further to the 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
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) In our opinion, and based on information and explanations given to
us, none of the directors are disqualified as on 31st March, 2010 from
being appointed as directors in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required, and present a true and fair view, in conformity with the
accounting principles generally accepted in India:
i) In so far as it relates to Balance Sheet, of the state of affairs of
the Company as at 31st March, 2010;
ii) In so far as it relates to the Profit and Loss Account, of the
Profit of the Company for the year ended on that date: and
iii) In so far as it relates to the Cash Flow Statement, of the cash
flows of the Company for the year ended on that date.
For P N RAGAVENDRA RAO &Co.
Chartered Accountants
P R VITTEL
Coimbatore Partner
27 th May,2010 M.No.200/18111
Firm Regn.No.003328S
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