Mar 31, 2015
We have audited the accompanying financial statements of SURYAJYOTI
SPINNING MILLS LIMITED, ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, 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 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 of 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.
Auditor's 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 thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 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 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 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.
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 31st March, 2015, and its Loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 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 - Refer Note 29(1) to
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 were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
Annexure to the Auditor's Report:
The Annexure referred to in Para 1 under the heading of "Report on
Other Legal and Regulatory Requirements" of our report of even date, to
the members of SURYAJYOTI SPINNING MILLS LIMITED, SECUNDERABAD, for the
year ended March 31,2015.
1. a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. As explained to us, the management has physically verified the fixed
assets during the year and there is a regular programme of verification
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of the assets. No discrepancies were noticed on
such verification.
2. a. The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is reasonable.
b. In our opinion, 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 inventory. The
discrepancies noticed on physical verification between the physical
stocks and book records were not material.
3. a. During the year, the Company has not granted any loans, secured or
unsecured to Companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013.
b. In view of our comment in paragraph (a) above, Clause (III) (a) and
(b) of paragraph 3 of the aforesaid order are not applicable to the
Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for 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.
5. The Company has not accepted any deposits from the public. Hence
the provisions of Sections 73 to 76 or any other relevant provisions of
the Companies Act, 2013, and the rules framed there under, do not apply
to this Company.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to sub-section (1) of section 148 of the Companies Act, 2013
and are of the opinion that prime facie the prescribed accounts and
records have been made and maintained. We have however not made a
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
7. a. According to the records of the Company, the company is not
regular in depositing undisputed statutory dues including provident
fund, employees '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 with the appropriate authorities.
b. According to the records of the Company, no undisputed statutory
dues including provident fund, employees '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 were in arrears as
at March 31,2015 for a period of more than six months from the date
they became payable, except Interest free Sales tax loan of ' 48.65
lakhs which is due for repayment.
c. According to the records of the Company and the information and
explanations given to us, the dues of Sales Tax, Income tax, Customs
Duty, Wealth Tax, Service Tax, Excise Duty and Cess which have not been
deposited on account of any dispute are as follows:
Sl. Nature of the Nature of Amount
No. Statute the dues (Rs.)
1 Andhra Pradesh General Sales Tax Sales 12,70,773
(APGST) Act, 1957 (Case filed by Tax dues
Bharat Petroleum Corporation
Limited)
2 Andhra Pradesh VAT 10,11,307
Value Added Tax, 2005 refund
Sl. Nature of the Period to
No. Statute which the Forum
amount where
relates dispute is
(Financial pending
1 Andhra Pradesh year)
General Sales Tax
(APGST) Act, 1957 1997-98 I Addl. Chief
(Case filed by Judge, City
Bharat Petroleum Civil court
Corporation
Limited)
2 Andhra Pradesh 2008-09 AP Sales
Value Added Tax, 2005 Tax
Appellate
Tribunal
d. According to the records of the Company, there were no amounts
which were required to be transferred to Investor Education and
Protection Fund. Therefore, the provisions of clause 3 (vii)(c) of the
Companies (Auditor's Report) Order, 2015 are not applicable to the
Company.
8. The Company has no accumulated losses as at the end of the
financial year. The Company has not incurred cash losses during the
year covered by our audit and also in the immediately preceding
financial year.
9. In our opinion and according to the information and explanations
given to us, the Company is not regular in repayment of dues to
financial institutions and Banks.
10. The Company has not given any guarantee for the loans taken by
others from banks and financial institutions.
11. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
12. Based upon the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year.
for BRAHMAYYA & CO.
Chartered Accountants
Firm's Regn No. 000513S
K.S.RAO
Place : Hyderabad Partner
Date : 30.05.2015 Membership No. 015850
Mar 31, 2014
We have audited the accompanying financial statements of SURYAJYOTI
SPINNING MILLS LIMITED, SECUNDERABAD ("the Company"), which comprise
the Balance Sheet as at March 31,2014, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements:
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error.
In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Basis for qualified Opinion:
2,500 Foreign Currency Convertible bonds of $ 1000 each outstanding and
due for payment from 17th February 2012. Necessary provision has been
made in books of accounts.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b. in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books ;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure referred to in paragraph 1 of our report of even date,
1. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the management has physically verified the fixed
assets during the year and there is a regular programme of verification
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of the assets. No material discrepancies were
noticed on such verification.
c) The Company has not disposed off plant and machinery hence; it has
not affected the going concern status of the Company.
2. a) The Inventory has been physically verified during the year by the
Management. In our opinion, the
frequency of verification is reasonable.
b) In our opinion, 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 inventory. The
discrepancies noticed on physical verification between the physical
stocks and book records were not material.
3. a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act 1956.
b) In view of our comment in paragraph 3(a) above, III (b), (c) & (d)
of the aforesaid order are not applicable to the company.
e) During the year, the company has not taken unsecured loans from the
parties covered in the register maintained under section 301 of the
companies Act 1956.
f) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from the other parties listed in the
register maintained under section 301 of the Companies Act 1956 are not
prima-facie prejudicial to the interests of the company.
g) The company is regular in payment of the principal amount and
interest thereon as stipulated.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and with regard to sale of
goods and services.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion
that the particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 have been entered in the
register to be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public. Hence the
provisions of Section 58A, 58AA and other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account relating to materials,
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 in respect
of textiles and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
9. a) According to the records of the Company, 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, wealth tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2014 for a period of more than six months
from the date they became payable.
c) According to the records of the Company and the information and
explanations given to us, the dues of sales tax, Income Tax, Customs
Duty, Wealth Tax, Service Tax, Excise Duty and Cess which have not been
deposited on account of any dispute are as follows :
Nature of the Nature of Amount Period to which
Statute the Dues Rs the amount relates
(Financial Year)
Andhra Pradesh General Sales Tax 12,70,773 1997-1998
Sales Tax (APGST) Act,1957 dues
Case filed by Bharat
Petroleum Corporation Ltd)
Andhra Pradesh Value VAT 10,11,307 2008-09
Added Tax, 2005 refund
Nature of the Statute Forum where dispute is pending
Andhra Pradesh General I Addl.Chief Judge, City Civil
Sales Tax (APGST) Act,1957 Court, Secunderabad
Case filed by Bharat
Petroleum Corporation Ltd)
Andhra Pradesh Value AP Sales Tax Appellate Tribunal
Added Tax, 2005
10. The Company has no accumulated losses at the end of the financial
year. The Company has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions and banks.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit
fund/society and therefore the requirements relating to such companies
are not applicable to the Company.
14. 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, and according to the information and explanations
given to us the term loans were applied for the purpose for which the
loans were obtained.
17. In our opinion, and according to the information and explanations
given to us the funds raised on short- term basis have not been used
for long-term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties or Companies covered in the register
maintained u/s 301 of the Companies Act 1956. Accordingly, the
provisions of Clause 4(xviii) of the Order are not applicable to the
Company.
19. During the year, the Company has not issued any debentures and
therefore the question of creating security in respect thereof does not
arise.
20. During the year, the Company has not raised any money by public
issue.
21. Based upon the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year.
for BRAHMAYYA & CO.
Chartered Accountants
Firm''s Registration Number: 000513S
(K.S.RAO)
Place : Hyderabad Partner
Date : 30.05.2014 Membership Number: 015850
Mar 31, 2012
We have audited the attached Balance Sheet of SURYAJYOTI SPINNING MILLS
LIMITED, SECUNDERABAD. (A.P) as at 31st March, 2012 and also the
Statement of Profit and Loss and 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 the 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.
We report as follows :
1. As required by the Companies (Auditors' Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. 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 purposes 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 (3C) of Section 211 of
the Companies Act, 1956;
v. 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 a Director in terms of clause (g) of sub-
section (1) of Section 274 of the Companies Act, 1956;
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read in conjunction
with the Schedules annexed therewith, 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 :
a) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March, 2012;
b) in the case of the Statement of Profit and Loss, of the Loss of the
Company 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.
RE: SURYAJYOTI SPINNING MILLS LIMITED, SECUNDERABAD.
Annexure referred to in paragraph 1 of our report of even date,
1. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the management has physically verified the fixed
assets during the year and there is a regular programme of verification
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of the assets. No material discrepancies were
noticed on such verification.
c) The Company has not disposed off plant and machinery hence; it has
not affected the going concern status of the Company.
2. a) The Inventory has been physically verified
during the year by the Management. In our opinion, the frequency of
verification is reasonable.
b) In our opinion, 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 inventory. The
discrepancies noticed on physical verification between the physical
stocks and book records were not material.
3. a) During the year the Company has neither granted nor 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.
b) In view of our comment in paragraph 3(a) above,(III) (b), (c), (d),
(e), (f) and (g) of paragraph 4 of the aforesaid order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and with regard to sale of
goods and services.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 have
been entered in the register to be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public. Hence
the provisions of Section 58A, 58AA and other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975 are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, 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 in respect of textiles and are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained.
9. a) According to the records of the Company, 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, wealth tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2012 for a period of more than six months
from the date they became payable.
c) According to the records of the Company and the information and
explanations given to us, the dues of sales tax, Income Tax, Customs
Duty, Wealth Tax, Service Tax, Excise Duty and Cess which have not been
deposited on account of any dispute are as follows :
S. Nature of the Nature of Amount
No. Statute the Dues (Rs)
1. Andhra Pradesh General Sales Sales Tax 12,70,773
Tax (APGST) Act, 1957 (Case
dues filed by Bharat
Petroleum Corporation
Limited)
2. Andhra Pradesh Value VAT 10,11,307
Added Tax, 2005 refund
S. Period to which Forum where
No. the amount relates dispute is
(Financial Year) pending
1. 1997-1998 I Addl.Chief Judge,
City Civil Court,
Secunderabad
2. 2008-09 AP Sales Tax
Appellate Tribunal
10. The Company has no accumulated losses at the end of the financial
year. The Company has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions and banks.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/ mutual benefit
fund/society and therefore the requirements relating to such companies
are not applicable to the Company.
14. 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, and according to the information and explanations
given to us the term loans were applied for the purpose for which the
loans were obtained.
17. In our opinion, and according to the information and explanations
given to us the funds raised on short-term basis have not been used for
long-term investment.
18. During the year, the Company has converted 11,70,000 share
warrants allotted to promoters in 2011-12 into 11,70,000 Equity Shares
@ Rs.10/- each at a premium of Rs.21/- per share.
19. During the year, the Company has not issued any debentures and
therefore the question of creating security in respect thereof does not
arise.
20. During the year, the Company has not raised any money by public
issue.
21. Based upon the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year.
For Brahmayya & Co.,
Chartered Accountants
Firm Regn. No. 000513S
K.S. Rao
Partner
Membership No.15850
Place : Hyderabad
Date : 30th May, 2012
Mar 31, 2010
We have audited the attached Balance Sheet of SURYAJYOTI SPINNING MILLS
LIMITED, SECUNDERABAD, (A.R) as at 31st March, 2010 and also the Profit
and Loss Account and the 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.
We report as follows :
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 enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that :
2 i) 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;
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, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
iv) 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 sub-section (3C) of Section 211 of the
Companies Act, 1956;
v) On the basis of the written representations received from the
directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that, none of the directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (I) of Section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read in conjunction
with the Schedules annexed therewith, 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 :
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
b) in the case of the Profit and Loss account, of the Profit of the
Company 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.
RE: SURYAJYOTI SPINNING MILLS LIMITED, SECUNDERABAD
Annexure referred to in paragraph I of our report of even date,
1.a) The Company has maintained proper records showing full particul
-ars, including quantitative details and situation of fixed assets.
b) As explained to us, the management has physically verified the fixed
assets during the year and there is a regular programme of verification
which, in our opinion, is reasonable having regard to the size of the
company and the nature of the assets. No material discrepancies were
noticed on such verification.
c) The Company has not disposed off Plant and Machinery hence, it has
not affected the going concern status of the Company.
2. a) The Inventory has been physically verified during the year by
the Management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, 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 inventory. The
discrepancies noticed on physical verification between the physical
stocks and book records were not material.
3.a) During the year the company has neither granted nor 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.
b) In view of our comment in paragraph 3(a) above, (III) (b), (c), (d),
(e), (f) and (g) of paragraph 4 of the aforesaid Order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and with regard to sale of
goods and services.
5.a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the particulars of contracts
or arrangements referred to in section 301 of the Companies Act,
1956 have been entered in the register to be maintained under that
section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public. Hence,
the provisions of Section 58A, 58AA and other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975 are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, 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(l)(d) of the Companies
Act, 1956 in respect of textiles and are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained.
9. a) According to the records of the Company, 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, wealth tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2010 for a period of more than six months
from the date they became payable.
10. The Company has no accumulated losses at the end of the financial
year. The Company has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions and banks.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/ mutual benefit fund /
society and therefore the requirements relating to such companies are
not applicable to the Company.
14. 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, and according to the information and explanations
given to us the term loans were applied for the purpose for which the
loans were obtained.
17. In our opinion, and according to the information and explanations
given to us the funds raised on short-term basis have not been used for
long-term investment.
18. 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.
19. During the year, the Company has not issued any debentures and
therefore the question of creating security in respect thereof does not
arise.
20. During the year, the Company has not raised any money by public
issue.
21. Based upon the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year.
For Brahmayya & Co.,
Chartered Accountants
Firm Regn. No. 000513S
Place : Hyderabad K.S. Rao
Date : 29.05.2010 Partner
Membership No. 15850
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