Mar 31, 2018
Report on the Standalone Financial Statements:-
I have audited the accompanying standalone financial results of Amarjothi Spinning Mills Limited, which comprise the Balance sheet as at 31st March 2018, 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.
Managementâs Responsibility for the Standalone Financial Statements:
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companiesâ Act 2013 (The Act)with respect to the preparation of these standalone 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 133of the Act, read with Rule 7 of the Companies (Accounts) Rule 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 judgements 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.
Auditorâs Responsibility:
My responsibility is to express an opinion on these Standalone financial statements based on my audit.
I 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.
I conducted my audit in accordance with the Standards on Auditing specified u/s 143(10) of the Act. These standards require that I 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 auditorâs judgement, 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 Companyâs preparation of the 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 Companyâs Directors as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my Audit Opinion on the Standalone financial statements.
OPINION:-
In my opinion and to the best of my information and according to the explanations given to me, the aforesaid standalone 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 2018, and its PROFIT and its CASH FLOWS for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:-
As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) 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, a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
As required by Section 143 (3) of the Act, I report that:
1. I have sought and obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of my audit.
2. In my opinion, proper books of accounts as required by law have been kept by the company so far as it appears from my examination of those books.
3. NOT APPLICABLE.
4. 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.
5. In my opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified u/s 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014.
6. On the basis of the written representations received from the directors as on 31st March 2018 and 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.
7. 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 my separate Report in Annexure - B.
8. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in my opinion and to the best of my information and according to the explanations given to me;
1. The Company does not have any pending litigations which would impact its financial position.
2. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
3. There has been no delay in transferring amounts, required to be transferred to the Investor Education and protection Fund by the Company.
ANNEXURE - A TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF AMARJOTHI SPINNING MILLS LIMITED.
(Referred to in paragraph (1) under âReport on other legal and regulatory requirementsâ of my report of even date)
In terms of the information and explanations sought by me and given by the company and the books and records examined by me in the normal course of audit and to the best of my knowledge and belief, I report the following:-
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
2) The fixed assets have been physically verified by the management during the year, which in my opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.
3) The title deeds of all the immovable properties of the company shown under the Fixed Assets schedule are held in the name of the company.
2. The inventories have been physically verified by the management at reasonable intervals during the year. In my opinion, the frequency of such verification is reasonable and no material discrepancies were noticed at the time of verification.
3. The Company has not granted loans, secured or unsecured, to Companies, Firms, LLPs or other parties covered in the register maintained under section 189 of the Act.
4. In respect of loans, investments and guarantees, the provisions of Sections 185 and 186 of the Act have been complied with.
5. The Company has not accepted any deposits to which the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under and the Directions issued by the RBI are applicable. Hence paragraph 3 (5) of CARO is not applicable to the company.
6. I have broadly reviewed the books of accounts maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148 of the Act and I am of the opinion that prima facie the prescribed accounts and records have been made and maintained. I have not however made a detailed examination of the cost records with a view to determining whether they are accurate or complete.
7. (a) Undisputed statutory dues including PF, or ESI, Income Tax, sales tax, service tax, Excise duty, customs duty, VAT cess etc have been regularly deposited by the Company with the appropriate authorities in all cases during the year.
(2) There are no dues of income tax, sales tax, customs duty, excise duty, service tax, VAT or cess etc, which have not been deposited on account of any dispute. A sum of Rs.2642080 has not been paid being Generation tax payable on electricity charges. The matter is under dispute and pending with the honourable high court of Madras. No provision has been made for this in the books.
8. The Company has not defaulted in repayment of loans taken from Financial Institution, Banks, Government or dues to Debenture holders.
9. The Company has not raised any money by way of Initial Public offer/Further Public offer during the year. In my opinion, the moneys raised by way of Term Loans during the year have been applied for the purposes for which those are raised.
ANNEXURE - B TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF AMARJOTHI SPINNING MILLS LIMITED.
Report on the Internal Financial Controls under clause (i) of sub section 3 of Section 143 of the Companies Act 2013 (âThe Actâ).
I have audited the internal financial controls over financial reporting of Amarjothi Spinning Mills Limited (âthe Companyâ) as of 31st March 2018 in conjunction with my audit of the standalone financial statements of the company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls:
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe 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 Companyâs 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.
Auditorsâ Responsibility:
My responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on my audit. I conducted my audit in accordance with the Guidance Note on Internal Financial Controls Over Financial Reporting (âthe Guidance Noteâ) and the Standards on Auditing issued by the ICAI and deemed to be prescribed under section 143(10) of the Companiesâ Act 2013, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those standards and the Guidance Note require that I 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.
My audit involves performing procedures to obtain evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. My audit of internal financial controls over financial reporting, included obtaining an understanding of internal 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 auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the Companyâs internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING:
A Companyâs 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 companyâs 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 Companyâs 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 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 my opinion, 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 March 31, 2018, based on âthe 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 Indiaâ.
Place : Coimbatore P.S.SITARAM, B.Sc., F.C.A.
Date : 30.05.2018 Chartered Accountant.
Membership No: 023033.
Mar 31, 2016
Report on the Standalone Financial Statements:-
I have audited the accompanying standalone financial results of Amarjothi Spinning Mills Limited , which comprise the Balance sheet as at 31st March 2016, 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 Standalone Financial Statements:
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companiesâ Act 2013 (The /Act)with respect to the preparation of these standalone 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 133of the Act, read with Rule 7 of the Companies (Accounts) Rule 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 judgements 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:
My responsibility is to express an opinion on these Standalone financial statements based on my audit.
I 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.
I conducted my audit in accordance with the Standards on Auditing specified u/s 143(10) of the Act. These standards require that I 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 auditorâs judgement, 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 Companyâs preparation of the 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 Companyâs Directors as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my Audit Opinion on the Standalone financial statements.
OPINION:-
In my opinion and to the best of my information and according to the explanations given to me, the aforesaid standalone 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 2016, and its PROFIT/LOSS and its CASH FLOWS for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:-
As required by the Companies (Auditorâs Report) Order, 2016 (''the Orderâ) 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, a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
As required by Section 143 (3) of the Act, I report that:
A I have sought and obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of my audit.
B. In my opinion, proper books of accounts as required by law have been kept by the company so far as it appears from my examination of those books.
C. NOT APPLICABLE.
D. 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.
E. In my opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified u/s 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014.
F. On the basis of the written representations received from the directors as on 31st March 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st march 2016 from being appointed as a director in terms of section 164(2) of the Act.
G 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 my separate Report in Annexure - B.
H. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in my opinion and to the best of my information and according to the explanations given to me;
1. The Company does not have any pending litigations which would impact its financial position.
2. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
3. There has been no delay in transferring amounts, required to be transferred to the Investor Education and protection Fund by the Company.
(Referred to in paragraph (1) under ''Report on other legal and regulatory requirementsâ of my report of even date)
In terms of the information and explanations sought by me and given by the company and the books and records examined by me in the normal course of audit and to the best of my knowledge and belief, I report the following:-
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the year, which in my opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties of the company shown under the Fixed Assets schedule are held in the name of the company.
2. The inventories have been physically verified by the management at reasonable intervals during the year. In my opinion, the frequency of such verification is reasonable and no material discrepancies were noticed at the time of verification.
3. The Company has not granted loans, secured or unsecured, to Companies, Firms, LLPs or other parties covered in the register maintained under section 189 of the Act.
4. In respect of loans, investments and guarantees, the provisions of Sections 185 and 186 of the Act have been complied with.
5. The Company has not accepted any deposits to which the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under and the Directions issued by the RBI are applicable. Hence paragraph 3 (5) of CARO is not applicable to the company.
6. I have broadly reviewed the books of accounts maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148 of the Act and I am of the opinion that prima facie the prescribed accounts and records have been made and maintained. I have not however made a detailed examination of the cost records with a view to determining whether they are accurate or complete.
7. (a) Undisputed statutory dues including PF, or ESI, Income Tax, sales tax, service tax, Excise duty, customs duty, VAT cess etc have been regularly deposited by the Company with the appropriate authorities in all cases during the year.
(b) There are no dues of income tax, sales tax, customs duty, excise duty, service tax, VAT or cess etc, which have not been deposited on account of any dispute. A sum of Rs.1579232 has not been paid being Generation tax payable on electricity charges. The matter is under dispute and pending with the honourable high court of Madras.
8. The Company has not defaulted in repayment of loans taken from Financial Institution, Banks, Government or dues to Debenture holders.
9. The Company has not raised any money by way of Initial Public offer/Further Public offer during the year. In my opinion, the moneys raised by way of Term Loans during the year have been applied for the purposes for which those are raised.
10. Based upon the audit procedures, I report that no fraud by the company and no fraud on the company by its officers/employees has been noticed or reported during the course of my audit.
11. The Managerial Remuneration has been paid / provided in accordance with the requisite approvals mandated by section 197 read with Schedule V of the Act.
12. The Company is not a NIDHI Company and therefore clause 3 (12) of the Order is not applicable to the Company.
13. In my opinion, all the related party transactions entered into by the company during the year are in compliance under section188 of the Act and the details there of have been disclosed in the financial statement as required by the Accounting Standard and the Act. The Company has a duly constituted Audit Committee as required under section 177 of the Act.
14. The Company has not made any preferential allotment / private placement of shares during the year and therefore clause 3 (14) of the Order is not applicable to the company for the year under review.
15. The Company has not entered into non cash transactions with directors / persons connected with him as stipulated under section 192 of the Act. Clause 3 (15) of the Order is therefore not applicable to the company.
16. In my opinion, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Place : Coimbatore V.NARAYANASWAMI
Date : 27.05.2016 Chartered Accountant.
Membership No: 023661.
Mar 31, 2015
I have audited the accompanying accounts and every financial statement
of Amarjothi Spinning Mills Limited, which comprise the Balance Sheet
as at March 31, 2015, 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 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 section 133 of the Companies
Act, 2013. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
I also state that :-
a) I have sought and obtained all the information and explanations
which to the best of my knowledge and belief were necessary for the
purpose of my audit and if not, the details thereof and the effect of
such information on the financial statements;
b) In my opinion, proper books of account as required by law have been
kept by the company so far as appears from my examination of those
books and proper returns adequate for the purposes of my audit have
been received;
c) The company's balance sheet and profit and loss account dealt with
in the report are in agreement with the books of account and returns;
d) In my opinion, the financial statements comply with the accounting
standards;
e) There are no observations or comments on the financial statements
which have any adverse effect on the functioning of the company;
f) No director is disqualified from being appointed as a director under
sub-section (2) of section 164;
g) There are no qualifications, reservation or adverse remark relating
to the maintenance of accounts and any other matters connected
therewith;
h) The company has adequate internal financial controls system in place
and is effective;
In my opinion and to the best of my information and according to the
explanations given to me, 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, 2015;
b) in the case of the Profit and Loss Account, of the PROFIT 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.
As required by the Companies (Auditor's Report) Order, 2015 issued by
the Ministry of Corporate Affairs, the Central Government of India
under the powers conferred by sub-section (11) of section 143 of the
Companies Act, 2013, I give in the Annexure a statement on the matters
specified in paragraph 3 of the Order.
Annexure to Independent Auditor's Report
The Annexure referred to in paragraph above of the My Report of even
date to the members of Amarjothi Spinning Mills Limited on the accounts
of the company for the year ended 31st March, 2015.
On the basis of such checks as I considered appropriate and according
to the information and explanation given to me during the course of my
audit, I report that:
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of its
fixed assets.
b) As explained to me, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
2. a) As explained to me, inventories have been physically verified
during the year by the management at reasonable intervals.
b) In my opinion and according to the information and explanations
given to me, 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 my opinion and on the basis of my 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) The company has taken unsecured loan from parties covered in the
register maintained under section 189 of the Companies Act, 2013. The
maximum amount involved during the year was Rs. 57.21 crores and the
year-end balance of loans taken from such parties was Rs. 51.67 crores.
These amounts have been brought in pursuant to the terms of sanction
given by the bankers.
b) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
c) There is no overdue amount of loans taken from parties listed in the
registers maintained under section 189 of the Companies Act, 2013.
e) According to the information and explanations given to me and on the
basis of my examination of the books of account, the Company has taken
unsecured loans from 4 parties listed in the register maintained under
Section 189 of the Companies Act, 2013.
f) The Company has not granted any loan, secured or unsecured to
companies, firms and other parties listed in the register maintained
under section 189 of the Companies' Act 2013 and hence the other
subsections are not applicable.
4. In my opinion and according to the information and explanations given
to me, 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. During the course of my audit, no major
instance of continuing failure to correct any weaknesses in the internal
controls has been noticed.
5. The Company has not accepted any deposits during the year and hence
the directives issued by the Reserve Bank of India and provisions of
section 73 to 76 and any other related provisions of the Companies Act,
2013 and the rules framed there under are not applicable.
6. 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 148 of the
Act and I am of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
7. 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, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to me there were no outstanding statutory dues as on 31st of
March, 2015 for a period of more than six months from the date they
became payable.
b) According to the information and explanations given to me, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
8. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by my audit and in the
immediately preceding financial year.
9. Based on my audit procedures and on the information and
explanations given by the management, I am of the opinion that, the
Company has not defaulted in repayment of dues to banks.
10. According to the information and explanations given to me, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
11. Based on my audit procedures and on the information given by the
management, I report that the company has applied the term loans taken
for the purpose for which they were obtained.
12. Based on the audit procedures performed and the information and
explanations given to me, I report that no fraud on or by the Company
has been noticed or reported during the year, nor have I been informed
of such case by the management.
(Sd/-) V. NARAYANASWAMI M.A., f.c.a
Place : Coimbatore Chartered Accountant
Date : 29.05.2015 Membership No. 023661
Mar 31, 2014
I have audited the accompanying financial statements of Amarjothi
Spinning Mills Limited,("the Company") which comprise the Balance
Sheet as at 31/03/2014, and the Statement of Profit and Loss cash flow
statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of financial position,
financial performance and cash flow of the Company in accordance with
the accounting standards referred to in sub -Section (3C) of Section
211 of the Companies Act 1956 ("the Act") read with the General
Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013. The
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of
financial statements that give a true and fair view and are free from
material misstatements, whether due to fraud or error.
Auditor''s Responsibility
My responsibility is to express an opinion on these financial
statements based on my audit.
I conducted my audit in accordance with the standards on auditing
issued by the Institute of Chartered Accountants of India. Those
standards require that I comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from misstatements.
Audit involves performing procedure to obtain audit evidence about the
amounts and disclosure in the financial statements. The procedure
selected depend upon auditor''s judgement, including the assessment of
the risk of material misstatements of the financial statements, whether
due to fraud or error. In making those risk assessment, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedure 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 accounting
estimates made by management, as well as evaluating the overall
presentation of financial statements.
I believe that audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion.
Opinion
In my opinion and to the best of my information and according to the
explanations given to me, 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 case of the Balance Sheet, of the state of affairs of the
Company as at 31/03/2014;
(b) in case Statement of Profit and Loss, of the Profit for the year
ended on that date; and
(c) in case of the Cash Flow Statements, 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 Central Government of India in terms of sub-Section
(4A) of Section 227 of the Act, I give in the Annexure a statements on
the matters specified in paragraphs 4 and 5 of the order.
2. As required by Section 227(3) of the Act, I report that:
a) I have obtained all information and explanations which to the best
of my knowledge and belief were necessary for the purpose of my audit;
b) In my opinion proper books of account as required by Law have been
kept by the Company so far as appears from my examinations of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and cash flow
statements dealt with by this Report are in agreement with the books of
account;
d) In my opinion , the Balance Sheet, Statement of Profit and Loss, and
cash flow statements comply with the Accounting Standards referred to
in sub-Section(3C) of Section 211 of the Companies Act,1956 , read with
the General Circular 15/2013 dated 13th September 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013;
e) On the basis of written representations received from the directors
as on 31/03/2014 and taken on record by the Board of Directors, none of
the director is disqualified as on 31/03/2014, from being appointed as
a director in terms of Clause (g) of sub-Section (1) of Section 274 of
the Companies Act, 1956.
The Annexure referred to in paragraph 1 of my report of even date to
the members of Amarjothi Spinning Mills Limited on the accounts of the
Company for the year ended 31 March 2014.
On the basis of such checks as I considered appropriate and according
to the information and explanation given to me during the course of my
audit, I report that;
1. 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 my opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c. The Company has not disposed off a substantial portion of the assets
during the year and hence, does not affect the going concern status of
the Company.
2. a. The inventory has been physically verified during the year by the
management. In my 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. On the basis of my examination of the records of inventory, I am of
the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. a. The Company has taken unsecured loan from parties covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.52.52 Crores and the
year-end balance of loans taken from such party was Rs.52.52 crores.
These amounts have been brought in pursuant to the terms of sanction
given by the bankers.
b. In my opinion the rate of interest and other terms and conditions on
which loans have been taken from parties listed in the registers
maintained under Section 301 are not, prima facie, prejudicial to the
interest of the Company.
c. The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
d. There is no overdue amount of loans taken from parties listed in the
registers maintained under Section 301 of the Companies Act, 1956.
e. The Company has not granted any loan, secured or unsecured to any
party covered in the register required to be maintained under Section
301 of the Companies Act, 1956.
4. In my opinion and according to the information and explanations
given to me, there are adequate internal control procedures
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. In my opinion, there is no
continuing failure to correct major weaknesses in the internal control
system.
5. In my opinion and according to the information and explanations
given to me, there are no transactions made in pursuance of contracts
or arrangements entered in the registers maintained under Section 301
and exceeding the value of five lakh rupees in respect of any party
during the year except to the extent of unsecured loans brought in by
the promoters for an amount of Rs.52.52 crores. Such amounts have been
brought in pursuant to the sanction given by the bankers for the amount
of secured loans taken from them.
6. The Company has not accepted any deposits from the public during the
year and hence the provisions of Sections 58A and 58AA of the Companies
Act 1956 or any other relevant provisions of the Act and the Reserve
Bank of India Rules on the Companies (Acceptance of Deposit) Rules 1975
are not applicable to the Company for the year under review.
7. In my opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
8. I 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 and I am
of the opinion that prima facie the prescribed accounts and record have
been made and maintained. However I have not made a detailed
examination to ascertain the accuracy of the statements.
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, custom
duty, service tax, excise -duty, cess and other statutory dues
applicable to it.
b. According to the information and explanations given to me, no
undisputed amounts payable in respect of income-tax, wealth-tax,
sales-tax, customs duty, service tax and excise duty were outstanding,
as at 31.03.2014 for a period of more than six months from the date
they became payable.
c. According to the records of the Company, there are no dues of sales
tax, income-tax, customs tax/ wealth -tax, excise duty, service tax
/cess which have not been deposited on account of any dispute.
10. There are no accumulated losses of the Company as on the date of
the Balance Sheet. The Company has not incurred any cash losses during
the financial year covered by my audit and the immediately preceding
financial year.
11. Based on my audit procedures and on the information and
explanations given by the management, I am of the opinion that the
Company has not defaulted in repayment of dues to banks.
12. The Company has not granted any loans on the basis of the security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or nidhi or mutual benefit fund /
society and hence the provisions of Clause 4(xiii) of the Companies
(Auditors Report) Order 2003 are not applicable to the Company for the
year under review.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments and hence the provisions of Clause 4
(xiv) of the Companies (Auditors Report) Order 2003 are not applicable
to the Company for the year under review.
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. The term loans have been applied for the purpose for which they
were raised.
17. According to the information and explanations given to me and on an
overall examination of the balance sheet of the Company, I report that
no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except core (permanent) working capital.
18. Based on my examination of records and the information provided to
me by management I report that the Company has not made preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Act.
19. During the period covered by my audit report, the Company has not
issued any debentures. The question of creation of any security in
respect of debentures does not arise.
20. The Company has not raised any money by way of public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, I report that no fraud on or by
the Company has been noticed or reported during the course of my audit.
V. NARAYANASWAMI, M.A., F.C.A.
Chartered Accountant
Place : Tirupur Proprietor
Date : 30.05.2014 Membership No.023661
Mar 31, 2013
I have audited the accompanying financial statements of Amarjothi
Spinning Mills Limited, which comprise the Balance Sheet as at 31st
March 2013 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 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. 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.
My responsibility is to express an opinion on these financial
statements based on my audit. I conducted my audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I 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.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion.
In my opinion and to the best of my information and according to the
explanations given to me, 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:
(i) in the case of the Balance Sheet, of the STATE OF AFFAIRS of the
Company as at 31 March 2013;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. 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 Act, I 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, I report that:
a. I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of my
audit;
b. In my opinion proper books of account as required by law have been
kept by the Company so far as appears from my 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 my 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 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of my report of even date to
the members of Amarjothi Spinning Mills Limited on the accounts of the
company for the year ended 31 March 2013.
On the basis of such checks as I considered appropriate and according
to the information and explanation given to me during the course of my
audit, I 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 me, fixed assets have been physically verified by
the management at reasonable intervals. No material discrepancies were
noticed on such verification.
c. In my opinion and according to the information and explanations
give to me, no fixed asset has been disposed off during the year that
affect the going concern assumption.
2. a. As explained to me, inventories have been physically verified
during the year by the management at reasonable intervals.
b. In my opinion and according to the information and explanations
given to me, 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 my opinion and on the basis of my 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. The company has taken unsecured loan from parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs.48.24 Crores and the
year-end balance of loans taken from such parties was Rs.48.24 crores.
These amounts have been brought in pursuant to the terms of sanction
given by the bankers.
b. In my opinion the rate of interest and other terms and conditions
on which loans have been taken from parties listed in the registers
maintained under section 301 are not, prima facie, prejudicial to the
interest of the company.
c. The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
d. There is no overdue amount of loans taken from parties listed in
the registers maintained under section 301 of the Companies Act, 1956.
e. According to the information and explanations given to me and on
the basis of my examination of the books of account, the Company has
taken unsecured loans from 4 parties listed in the register maintained
under Section 301 of the Companies'' Act 1956.
f. The Company has not granted any loan, secured or unsecured to
companies, firms and other parties listed in the register maintained
under Section 301 of the Companies Act, 1956 and hence the other
subsections are not applicable.
4. In my opinion and according to the information and explanations
given to me, 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. During the course of my audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a. Based on the audit procedures applied by me and according to
the information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b. As per information & explanations given to me and in my opinion, the
transaction entered into by the company with parties covered u/s.301 of
the Act does not exceeds five lakhs rupees in a financial year other
than unsecured loans mentioned in item no.3 of this report and a sum of
Rs.58.40 lakhs paid towards purchase of lands. Such transactions are
made at prevailing market prices and are comparable.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act 1956.
7. As per information & explanations given by management, 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 I am 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, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise duty, Cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to me there were no outstanding statutory dues as on 31st of
March, 2013 for a period of more than six months from the date they
became payable.
b. According to the information and explanations given to me, there is
no amounts payable in respect of Income-tax, wealth-tax, service tax,
sales-tax, customs duty and excise duty which have not been deposited
on account of any disputes.
V. NARAYANASWAMI, M.A., F.C.A.
Chartered Accountant
Place : Tirupur Proprietor
Date : 24.05.2013 Membership No.023661
Mar 31, 2012
1. I have audited the attached balance sheet of Amarjothi Spinning
Mills Limited as at 31st March 2012, and also the profit and loss
statement 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. My responsibility is to express an opinion
on these financial statements based on my audit.
2. I conducted my audit in accordance with the auditing standards
generally accepted in India. Those Standards require that I plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. 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 managements, as well as evaluating the overall financial statement
presentation. I believe that my audit provides a reasonable basis for
my opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 and
amended by the (Auditor's Report) (Amendment) Order, 2004, issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956,1 enclose in theAnnexurea statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to my comments in the Annexure referred to above, I report
that:
a. I have obtained all the information and explanations, which to the
best of my knowledge and belief were necessary for the purposes of my
audit;
b. In my opinion, proper books of account as required by law have been
kept by the company so far as appears from my 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 my opinion, the Balance Sheet, Profit and Loss Statement 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 31s* March 2012 and taken on record by the Board of
Directors, I 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;
f. In my opinion and to the best of my information and according to
the explanations given to me, 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 31s* March 2012;
ii. In the case of the Profit and Loss Statement, of the Profit for
the year ended on that date; and
iii. In the case of the Cash Flow statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT:
Referred to in paragraph 3 of my report of even date,
1. 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 my opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed
on such verification.
c. The company has not disposed off a substantial portion of the
assets during the year and hence, does not affect the going concern
status of the Company.
2. a. The inventory has been physically verified during the year by
the management. In my 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. On the basis of my examination of the records of inventory, I am of
the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. a. The company has taken unsecured loan from parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.30.75 Crores and the
year-end balance of loans taken from such party was Rs.29.36 crores.
These amounts have been brought in pursuant to the terms of sanction
given by the bankers.
b. In my opinion the rate of interest and other terms and conditions
on which loans have been taken from parties listed in the registers
maintained under section 301 are not, prima facie, prejudicial to the
interest of the company.
c. The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
d. There is no overdue amount of loans taken from parties listed in
the registers maintained under section 301 of the Companies Act, 1956.
e. The Company has not granted any loan, secured or unsecured to any
party covered in the register required to be maintained under Section
301 of the Companies Act, 1956.
4. In my opinion and according to the information and explanations
given to me, there are adequate internal control procedures
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. In my opinion, there is no
continuing failure to correct major weaknesses in the internal control
system.
5. In my opinion and according to the information and explanations
given to me, there are no transactions made in pursuance of contracts
or arrangements entered in the registers maintained under section 301
and exceeding the value of five lakh rupees in respect of any party
during the year except to the extent of unsecured loans brought in by
the promoters for an amount of Rs.29.36 crores. Such amounts have been
brought in pursuant to the sanction given by the bankers for the amount
of secured loans taken from them.
6. The Company has not accepted any deposits from the public during
the year and hence the provisions of sections 58Aand 58AAof the
Companies Act 1956 or any other relevant provisions of the Act and the
Reserve Bank of India Rules on the Companies (Acceptance of Deposit)
Rules 1975 are not applicable to the company for the year under review.
7. In my opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. I 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 and I am
of the opinion that prima facie the prescribed accounts and record have
been made and maintained. However I have not made a detailed
examination to ascertain the accuracy of the statements.
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,
custom duty, service tax, excise -duty, cess and other statutory dues
applicable to it.
b. According to the information and explanations given to me, no
undisputed amounts payable in respect of income-tax, wealth-tax,
sales-tax, customs duty, service tax and excise duty were outstanding,
as at 31.03.2012 for a period of more than six months from the date
they became payable.
c. According to the records of the company, there are no dues of sales
tax, income- tax, customs tax/wealth -tax, excise duty, service tax
/cess which have not been deposited on account of any dispute.
10. There are no accumulated losses of the company as on the date of
the Balance Sheet. The company has not incurred any cash losses during
the financial year covered by my audit and the immediately preceding
financial year.
11. Based on my audit procedures and on the information and
explanations given by the management, I am of the opinion that the
company has not defaulted in repayment of dues to banks.
12. The Company has not granted any loans on the basis of the security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or nidhi or mutual benefit fund /
society and hence the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order 2003 are not applicable to the Company for the
year under review.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments and hence the provisions of clause 4
(xiv) of the Companies (Auditors Report) Order 2003 are not applicable
to the company for the year under review.
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. The term loans have been applied for the purpose for which they
were raised.
17. According to the information and explanations given to me and on
an overall examination of the balance sheet of the company, I report
that no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except core (permanent) working capital.
18. Based on my examination of records and the information provided to
me by management I report that the company has not made preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
19. During the period covered by my audit report, the company has not
issued any debentures. The question of creation of any security in
respect of debentures does not arise.
20. The Company has not raised any money by way of public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, I report that no fraud on or by
the company has been noticed or reported during the course of my audit.
V. NARAYANASWAMI, M.A., F.C.A.
Place : Tirupur Chartered Accountant
Date : 17.08.2012 Membership No.023661
Mar 31, 2011
1. I have audited the attached balance sheet of Amarjothi Spinning
Mills Limited as at 31st March 2011, 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 companyÃs management. My responsibility is to express an opinion on
these financial statements based on my audit.
2. I conducted my audit in accordance with the auditing standards
generally accepted in India. Those Standards require that I plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. 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 managements, as well as evaluating the overall financial statement
presentation. I believe that my audit provides a reasonable basis for
my opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003 and
amended by the (AuditorÃs Report) (Amendment) Order, 2004, issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, I enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said order.
4. Further to my comments in the Annexure referred to above, I report
that :
a. I have obtained all the information and explanations, which to the
best of my knowledge and belief were necessary for the purposes of my
audit;
b. In my opinion, proper books of account as required by law have been
kept by the company so far as appears from my 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 my 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;
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, I report that none of the directors is disqualified as on
31st March 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
f. In my opinion and to the best of my information and according to
the explanations given to me, 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 the case of the Cash Flow statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT:
Referred to in paragraph 3 of my report of even date,
1. 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 my opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed
on such verification.
c. The company has not disposed off a substantial portion of the
assets during the year and hence, does not affect the going concern
status of the Company.
2. a. The inventory has been physically verified during the year by
the management. In my 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. On the basis of my examination of the records of inventory, I am of
the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. a. The company has taken unsecured loan from parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs.33.61 Crores and the
year-end balance of loans taken from such party was Rs.28.44 crores.
These amounts have been brought in pursuant to the terms of sanction
given by the bankers.
b. In my opinion the rate of interest and other terms and conditions
on which loans have been taken from parties listed in the registers
maintained under section 301 are not, prima facie, prejudicial to the
interest of the company.
c. The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
d. There is no overdue amount of loans taken from parties listed in
the registers maintained under section 301 of the Companies Act, 1956.
e. The Company has not granted any loan, secured or unsecured to any
party covered in the register required to be maintained under Section
301 of the Companies Act, 1956.
4. In my opinion and according to the information and explanations
given to me, there are adequate internal control procedures
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. In my opinion, there is no
continuing failure to correct major weaknesses in the internal control
system.
5. In my opinion and according to the information and explanations
given to me, there are no transactions made in pursuance of contracts
or arrangements entered in the registers maintained under section 301
and exceeding the value of five lakh rupees in respect of any party
during the year except to the extent of unsecured loans brought in by
the promoters for an amount of Rs.28.44 crores. Such amounts have been
brought in pursuant to the sanction given by the bankers for the amount
of secured loans taken from them.
6. The Company has not accepted any deposits from the public during
the year and hence the provisions of sections 58A and 58AA of the
Companies Act 1956 or any other relevant provisions of the Act and the
Reserve Bank of India Rules on the Companies (Acceptance of Deposit)
Rules 1975 are not applicable to the company for the year under review.
7. In my opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. I 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 and I am
of the opinion that prima facie the prescribed accounts and record have
been made and maintained. However I have not made a detailed
examination to ascertain the accuracy of the statements.
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,
employeesà state insurance, income- tax, sales-tax, wealth - tax,
custom duty, service tax, excise Ãduty, cess and other statutory dues
applicable to it.
b. According to the information and explanations given to me, no
undisputed amounts payable in respect of income-tax, wealth-tax,
sales-tax, customs duty, service tax and excise duty were outstanding,
as at 31.03.2011 for a period of more than six months from the date
they became payable.
c. According to the records of the company, there are no dues of sales
tax, income- tax, customs tax/wealth Ãtax, excise duty, service tax
/cess which have not been deposited on account of any dispute, except a
sum of Rs.26.89 lakhs demanded by the TNEB where the Company has gone
on appeal to the Honourable High Court of Madras, which has granted a
stay on the collection of amount , pending disposal of the Appeal.
10. There are no accumulated losses of the company as on the date of
the Balance Sheet. The company has not incurred any cash losses during
the financial year covered by my audit and the immediately preceding
financial year.
11. Based on my audit procedures and on the information and
explanations given by the management, I am of the opinion that the
company has not defaulted in repayment of dues to banks.
12. The Company has not granted any loans on the basis of the security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or nidhi or mutual benefit fund /
society and hence the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order 2003 are not applicable to the Company for the
year under review.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments and hence the provisions of clause 4
(xiv) of the Companies (Auditors Report) Order 2003 are not applicable
to the company for the year under review.
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. The term loans have been applied for the purpose for which they
were raised.
17. According to the information and explanations given to me and on
an overall examination of the balance sheet of the company, I report
that no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except core (permanent) working capital.
18. Based on my examination of records and the information provided to
me by management I report that the company has not made preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
19. During the period covered by my audit report, the company has not
issued any debentures. The question of creation of any security in
respect of debentures does not arise.
20. The Company has not raised any money by way of public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, I report that no fraud on or by
the company has been noticed or reported during the course of my audit.
V. NARAYANASWAMI, M.A., F.C.A.
Chartered Accountant
Membership No.023661
Place : Tirupur
Date : 18.08.2011.
Mar 31, 2010
1. I have audited the attached balance sheet of Amarjothi Spinning
Mills Limited 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. My responsibility is to express an opinion on
these financial statements based on my audit.
2. I conducted my audit in accordance with the auditing standards
generally accepted in India. Those Standards require that I plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. 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 managements, as well as evaluating the overall financial statement
presentation. I believe that my audit provides a reasonable basis for
my opinion.
3. As required by the Companies (Auditors Report) Order, 2003 and
amended by the (Auditors Report) (Amendment) Order, 2004, issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956,1 enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to my comments in the Annexure referred to above, I report
that:
a. I have obtained all the information and explanations, which to the
best of my knowledge and belief were necessary for the purposes of my
audit;
b. In my opinion, proper books of account as required by law have been
kept by the company so far as appears from my 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 my 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;
e. On the basis of written representations received from the
directors, as on 31" March 2010 and taken on record by the Board of
Directors, I report that none of the directors is disqualified as on
31" March 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
f. In my opinion and to the best of my information and according to
the explanations given to me, 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 2010;
ii. In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii. In the case of the Cash Flow statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT: Referred to in paragraph 3 of my report
of even date,
1. 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 my opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed
on such verification.
c. The company has not disposed off a substantial portion of the
assets during the year and hence, does not affect the going concern
status of the Company.
2. a. The inventory has been physically verified during the year by
the management. In
my 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. On the basis of my examination of the records of inventory, I am of
the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. a. The company had taken unsecured loan from parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.26.67 Crores and the
year end balance of loans taken from such party was Rs.21.27 crores.
These amounts have been brought in pursuant to the terms of sanction
given by the bankers.
b. In my opinion the rate of interest and other terms and conditions
on which loans have been taken from parties listed in the registers
maintained under section 301 are not, prima facie, prejudicial to the
interest of the company.
c. The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
d. There is no overdue amount of loans taken from parties listed in
the registers maintained under section 301 of the Companies Act, 1956.
e. The Company has not granted any loan, secured or unsecured to any
party covered in the register required to be maintained under Section
301 of the Companies Act, 1956.
4. In my opinion and according to the information and explanations
given to me, there are adequate internal control procedures
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. In my opinion, there is no
continuing failure to correct major weaknesses in the internal control
system.
5. In my opinion and according to the information and explanations
given to me, there are no transactions made in pursuance of contracts
or arrangements entered in the registers maintained under section 301
and exceeding the value of five lakh rupees in respect of any party
during the year except to the extent of unsecured loans brought in by
the promoters for an amount of Rs.21.27 crores. Such amounts have been
brought in pursuant to the sanction given by the bankers for the amount
of secured loans taken from them.
6. The Company has not accepted any deposits form the public during
the year and hence the provisions of sections 58A and 58AA of the
Companies Act 1956 or any other relevant provisions of the Act and the
Reserve Bank of India Rules on the Companies (Acceptance of Deposit)
Rules 1975 are not applicable to the company for the year under review.
7. In my opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. I 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 and I am
of the opinion that prima facie the prescribed accounts and record have
been made and maintained. However I have not made a detailed
examination to ascertain the accuracy of the statements.
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, custom
duty, service tax, excise -duty, cess and other statutory dues
applicable to it.
b. According to the information and explanations given to me, no
undisputed amounts payable in respect of income-tax, wealth-tax,
sales-tax, customs duty, service tax and excise duty were outstanding,
as at 31.03.2010 for a period of more than six months from the date
they became payable.
c. According to the records of the company, there are no dues of sales
tax, income- tax, customs tax/wealth -tax, excise duty, service tax
/cess which have not been deposited on account of any dispute, except a
sum of Rs.26.89 lakhs demanded by the TNEB where the Company has gone
on appeal to the Honourable High Court of Madras, which has granted a
stay on the collection of amount, pending disposal of the Appeal.
10. There are no accumulated losses of the company as on the date of
the Balance Sheet. The company has not incurred any cash losses during
the financial year covered by my audit and the immediately preceding
financial year.
11. Based on my audit procedures and on the information and
explanations given by the management, I am of the opinion that the
company has not defaulted in repayment of dues to banks.
12. The Company has not granted any loans on the basis of the security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or nidhi or mutual benefit fund /
society and hence the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order 2003 are not applicable to the Company for the
year under review.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments and hence the provisions of clause 4
(xiv) of the Companies (Auditors Report) Order 2003 are not applicable
to the company for the year under review.
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. The term loans have been applied for the purpose for which they
were raised.
17. According to the information and explanations given to me and on
an overall examination of the balance sheet of the company, I report
that no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except core (permanent) working capital.
18. Based on my examination of records and the information provided to
me by management I report that the company has not made preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
19. During the period covered by my audit report, the company has not
issued any debentures. The question of creation of any security in
respect of debentures does not arise.
20. The Company has not raised any money by way of public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, I report that no fraud on or by
the company has been noticed or reported during the course of my audit.
Place : Tirupur V. NARAYANASWAMI, M.A., F.C.A.
Date : 09.08.2010. Chartered Accountant
Membership No.023661
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