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Auditor Report of Girnar Spintex Industries Ltd.
Mar 31, 2024
We have audited the accompanying standalone Financial Statements of GIRNAR SPINTEX
INDUSTIRES LIMITED, (âThe Companyâ), which comprise the Balance sheet as at March
31, 2024, the Statement of Profit and Loss, including the statement of Other
Comprehensive Income, the Cash Flow Statement and the Statement of Changes in
Equity for the year then ended, and notes to the Standalone Financial Statements,
including a summary of significant accounting policies and other explanatory information.
(hereinafter referred to as âthe financial statementsâ)
In our opinion and to the best of our information and according to the explanations given
to us, the aforesaid standalone financial statements give the information required by the
Companies Act, 201 3(âthe Actâ) 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 2024, its loss and other comprehensive income,
its cash flows and changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with the
Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditors Responsibilities
for the Audit of the Standalone Financial Statementsâ section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Standalone Financial Statements.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Standalone Financial Statements for the financial year
ended March 31, 2024. These matters, if any, were addressed in the context of our
audit of the Standalone Financial Statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORâS
REPORT THEREON
The Companyâs Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual report, but does not include
the standalone Financial Statements and our auditorsâ report thereon.
Our opinion on the standalone Financial Statements does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Financial Statements, our responsibility is to
read the other information and, in doing so, consider whether such other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit
or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information;
we are required to report that fact. We have nothing to report in this regard.
Management''s and Board of Directors Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 1 34(5)
of 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 including other
comprehensive income, cash flows and changes in equity of the Company in accordance
the Indian Accounting Standards (Ind AS) and the accounting principles generally accepted
in India,. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding 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 the design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of the
standalone Financial Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone Financial Statements, management is responsible for
assessing the Companyâs ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companyâs financial
reporting process.
AUDITORâS RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the Financial
Statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditorâs report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone Financial
Statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 1 43(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the
operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the Companyâs ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditorâs report to the
related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditorâs report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone Financial
Statements, including the disclosures, and whether the standalone Financial
Statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statem
We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Financial Statements for the
financial year ended March 31, 2024 and are therefore the key audit matters. We
describe these matters in our auditorâs report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such
communication
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("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, a statement on the matters Specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we further 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 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, Statement of Changes in Equity and
Cash Flow Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the aforesaid standalone financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules 201 4;
e) On the basis of written representations received from the directors as on March 31,
2024, and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2024, from being appointed as a director in terms of
Section 1 64(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting
of the Company and the operating effectiveness of such controls, refer to our separate
report in "Annexure B";
g) In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in
h) With respect to other matters to be included in the Auditor''s Report in accordance
with Rule 1 1 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, we
report as under:
(i) The Company has disclosed the impact of pending litigations on its financial
position in its financial statements - Refer Note B-2 to the financial
statements;
(ii) The Company did not have any long-term contracts including derivative
contracts by which there were any material foreseeable losses.
(iii) The company is not liable for contribution to the Investor Education and
Protection Fund.
(iv) Management Representation:
(a) The management has represented that, to the best of its knowledge and
belief, no funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of
funds) by the company to or in any other person(s) or entity(ies), including
foreign entities (âIntermediariesâ), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, whether,
directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the company (âUltimate
Beneficiariesâ) or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.
(b) The management has represented that, to the best of its knowledge and
belief, no funds have been received by the company from any person(s)
or entity(ies), including foreign entities (âFunding Partiesâ), with the
understanding, whether recorded in writing or otherwise, that the company
shall, whether, directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the
Funding party (âUltimate Beneficiariesâ) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered
reasonable and appropriate in the circumstances, nothing has come to
our notice that has caused us to believe that the representations under sub¬
clause (a) and (b) of Rule 11(e) contain any material misstatement.
(v) The company has not paid any dividend during the year.
(vi) Based on our examination which included test checks, the Company has used
accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the software.
Further, during the course of our audit we did not come across any instance
of audit trail feature being tampered with.
NENAWATI AND ASSOCIATES
Chartered Accountants
FRN NO. 002148C
Place: Kolhapur CA. ARIHANT NENAWATI
Date: 31st May 2024 Partner
UDIN: 24405762BKBNBE781 1 M.No.405762
Mar 31, 2014
We have audited the accompanying financial statements of Amit Spinning
Industries Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards 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. 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
Attention is drawn to:
(a) Note No. 29 with respect to recoverability of amount of 1,93,46,572
in respect of duty drawbacks.
(b) Note No. 33 with respect to realizability of amount of 8,78,24,766
in respect of deferred tax asset.
We report that had the Company decided to write off the sums as
mentioned above, the loss for the year would have been greater by
Rs.10,71,71,338 and would have amounted to Rs.20,33,73,207 (as against
the reported figure of Rs.9,62,01,869), with a consequential effect on
Accumulated losses, Loans and Advances and Deferred Tax Asset.
Without qualifying our opinion, attention is also drawn to Note No.30
regarding preparation of accounts on a going concern basis due to
reasons indicated therein.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of 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..
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE TO THE AUDITORS'' REPORT (Referred to in paragraph 3 of our
report of even date)
i) a) The Company has maintained proper records showing full
particulars including quantitative details and the situation of its
fixed assets.
b) According to the information and explanations given to us, the
Company has a procedure to carry out physical verification of fixed
assets by the management, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books account.
c) During the year, the Company has not disposed off substantial part
of its fixed assets, so as to affect its going concern. ii) a) The
company has conducted physical verification of inventory at reasonable
intervals during the year.
b) In our opinion and according to information and explanations given
to us, the procedures for physical verification of inventory followed
by the management are reasonable having regard to the size of the
Company and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books account.
iii) a) According to the information and explanations given to us, 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) As the Company has not granted any such loans, provisions of clause
4(iii)(b), (iii)(c) and (iii)(d) of the Order are not applicable to the
Company.
c) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of 4(iii)(f) and (iii)(g) of the Order are not applicable to the
Company.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing major weaknesses in such internal controls.
v) a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
particulars or arrangements referred to in section 301 of the Companies
Act, 1956 have been entered in the register required to be maintained
under that section; and b) during the year, there are no such
transactions made in pursuance of contracts or agreements entered in
the register maintained under section 301 of the companies Act, 1956,
exceeding the value of Rupees Five Lakhs in respect of any party during
the year and hence, the provisions of clause 4(v)(b) of the Order are
not applicable to the Company.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
during the year. Therefore, the provisions of clause 4(vi) of the Order
are not applicable to the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business
viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Companies Act, 1956 and are of opinion that prima facie, the prescribed
accounts and records have been made and maintained.
We have not, however, made a detailed examination of the records with a
view to determine whether they are accurate or complete.
ix) (a)According to the information and explanations given to us and
records examined by us, the Company is generally regular in depositing
the 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
others material statutory dues with the appropriate authority.
(b)According to the information and explanations given to us, there are
no arrears of undisputed statutory dues as on March 31, 2014, for a
period of more than six months from the date they become payable. (c)
According to the information and explanations given to us, details of
dues of Excise Duty, which have not been deposited on account of any
dispute are given below:
S.
No. Name of the Statute Nature of the dues Amount
(in Rupees)
1 Maharashtra Value Sales Tax and penalty 10,44,000
Added Tax (net of payment of
Rs.2,00,000
under protest)
2 Maharashtra Value Sales Tax and penalty 9,64,390
Added Tax (net of payment of
Rs.16,90,614 by way
of adjustment of refund)
Name of the Statue Period to which Forum where dispute
the amount relates pending
Maharashtra Value
Added Tax 2004-05 First Appellate Authority
Maharashtra Value
Added Tax 2009-10 First Appellate Authority
x) The accumulated losses at end of financial year are more than 50% of
its net worth. The Company incurred cash loss before working capital
changes amounting to Rs.1,35,91,753 in the year under audit whereas
there was no cash loss during the preceding financial year.
xi) According to the information and explanations given to us and
records examined by us, we are of the opinion that the Company has
defaulted in repayment of the dues to a bank as infra. The Company did
not have outstanding dues to any financial institution and did not have
outstanding debentures during the year.
(Rs. in lacs)
Bankers Type of Loan OutStanding Overdue Overdue
as on 31.3.2014 Interest Principal
Axis Bank Term Loan 1615.08 13.70 81.38
(10% p.a.)
Axis Bank FITL (10% p.a.) 80.86 0.69 4.05
Axis Bank WCTL (10% p.a.) 70.90 0.60 3.30
UCO Bank WCTL 122.95 35.56 37.39
Grand Total 1889.80 50.55 126.13
Bankers Default status
Axis Bank The overdue principal as on 31.03.2014 has not been
paid till balance sheet date. However, the interest has
Axis Bank been paid (Except interest of Rs.2,73,582 on term loan
Axis Bank of Rs.16.15 crores)
UCO Bank The Account has become NPA and the matter is before
BIFR for restructuring.
Grand Total
Further, as informed to us, the loan facilities availed from UCO Bank
as working capital term loan (outstanding balance as on 31.3.2014
amounting to Rs.1.23 crores) and cash credit facilities (outstanding
balance as on 31.3.2014 amounting to Rs.8.28 crores) have become
non-performing asset (NPA) for the lender as the company has not paid
the dues within 90 days of payments being falling due.
xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares debentures and other securities.
xiii) In our opinion and according to the information and explanations
given to us the Company is not a chit fund or Nidhi/ mutual benefit
fund/ society. Therefore, the provisions of clause 4(xiii) of the order
are not applicable to the Company.
xiv) In our opinion and according to the information and explanations
given to us the Company is not dealing or trading in shares,
securities, debentures and other investments. Therefore, the provisions
of clause 4(xiv) of the order are not applicable to the Company.
xv) According to the information and explanations given to us, the
terms and conditions of the guarantees given by the Company for loans
taken by others from banks or financial institutions during the year
under audit, are not prejudicial to the interest of the Company.
xvi) In our opinion and according to information and explanations given
to us, the term loans have been applied for the purpose for which these
were raised.
xvii) On the basis of overall examination of the Balance Sheet of the
Company and according to the information and explanations given to us,
in our opinion the funds raised on short-term basis have not been used
for long-term investment.
xviii) According to the information and explanations given to us,
during the period under reference the Company has not made preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
xix) According to the information and explanations given to us, the
Company has not issued any debentures. Therefore, the provisions of
clause 4(xix) of the order are not applicable to the Company.
xx) According to the information and explanations given to us, the
Company has not raised any money by public issues during the year under
audit. Therefore, the provisions of clause 4(xx) of the order are not
applicable to the Company.
xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no material
fraud on or by the Company has been noticed or reported during the year
under audit.
For Sunil Jain & Co.
Chartered Accountants
(Registration No. 003855N)
Sd/-
Sanchit Jain
Place New Delhi Partner
Date : May 26, 2014 Membership No. 511714
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Amit Spinning
Industries Limited ("the Company"), which comprise the Balance
Sheet as at 31st March , 2013, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act"). This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
Attention is drawn to:
(a) Note No. 29 with respect to recoverability of amount of 1,93,46,572
in respect of duty drawbacks.
(b) Note No. 33 with respect to reliability of amount of 8,78,24,766
in respect of deferred tax asset.
We report that had the Company decided to write off the sums as
mentioned above, the loss for the year would have been greater by
Rs.10,71,71,338 and would have amounted to Rs.13,76,91,353 (as against
the reported figure of Rs.3,05,20,015), with a consequential effect on
Accumulated losses, Loans and Advances and Deferred Tax Asset.
Without qualifying our opinion, attention is also drawn to Note No.30
regarding preparation of accounts on a going concern basis due to
reasons indicated therein.
Subject to our remarks above, in our opinion and to the best of our
information and according to the explanations given to us, the
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 3 of our report of even date)
i) a) The Company has maintained proper records showing full
particulars including quantitative details and the situation of its
fixed assets.
b) According to the information and explanations given to us, the
Company has a procedure to carry out physical verification of fixed
assets by the management, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books account.
c) During the year, the Company has not disposed off substantial part
of its fixed assets, so as to affect its going concern.
ii) a) The company has conducted physical verification of inventory at
reasonable intervals during the year.
b) In our opinion and according to information and explanations given
to us, the procedures for physical verification of inventory followed
by the management are reasonable having regard to the size of the
Company and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books account.
iii) a) According to the information and explanations given to us, 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) As the Company has not granted any such loans, provisions of clause
4(iii)(b), (iii)(c) and (iii)(d) of the Order are not applicable to the
Company.
c) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of 4(iii)(f) and (iii)(g) of the Order are not applicable to the
Company.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing major weaknesses in such internal controls.
v) a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
particulars or arrangements referred to in section 301 of the Companies
Act, 1956 have been entered in the register required to be maintained
under that section; and b) during the year, there are no such
transactions made in pursuance of contracts or agreements entered in
the register maintained under section 301 of the companies Act, 1956,
exceeding the value of Rupees Five Lakhs in respect of any party during
the year and hence, the provisions of clause 4(v)(b) of the Order are
not applicable to the Company.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
during the year. Therefore, the provisions of clause 4(vi) of the Order
are not applicable to the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business
viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Companies Act, 1956 and are of opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
ix) (a)According to the information and explanations given to us and
records examined by us, the Company is generally regular in depositing
the 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
others material statutory dues with the appropriate authority.
(b)According to the information and explanations given to us, there are
no arrears of undisputed statutory dues as on 31st March 2013, for a
period of more than six months from the date they become payable.
(c) According to the information and explanations given to us, details
of dues of Excise Duty, which have not been deposited on account of any
dispute are given below:
S.
No. Name of the
Statute Nature of
the dues Amount Period to
which Forum where
dispute
(in Rupees) the amount
relates pending
1 Maharashtra
Value Sales
Tax and
penalty 8,44,000 2004-05 First
Appellate
Authority
Added Tax (net of
payment of
Rs.2,00,000
under
protest)
2 Employee''s
Provident Damages
and
Interest - 2003-06 BIFR Fund and
Miscellaneous (net of
payment of
Provisions
Act, 1952 Rs.15,94,349
under
protest)
x) The accumulated losses at end of financial year are more than 50% of
its net worth. There was no cash loss in the year under audit whereas
the Company incurred cash loss before working capital changes
Rs.18,18,94,013 during the preceding financial year.
xi) According to the information and explanations given to us and
records examined by us, we are of the opinion that the Company has
defaulted in repayment of the dues to a bank as infra. The Company did
not have outstanding dues to any financial institution and did not have
outstanding debentures during the year.
Bankers Type of
Loan Out Standing Overdue Overdue Default status
as on
31.3.2012 Interest Principal
Axis
Bank Term Loan 1,970.75 50.06 74.69 The overdue
principal and
interest as on
31.03.2013
(10% p.a.) has not been
paid till
balance sheet
date.
Axis
Bank FITL (10%
p.a.) 98.66 2.53 3.73 The overdue
principal and
interest as on
31.03.2013
has not been
paid till
balance sheet
date.
Axis
Bank WCTL (10%
p.a.) 86.26 2.21 3.05 The overdue
principal and
interest as
on 31.03.2013
has not been
paid till
balance sheet
date.
UCO
Bank WCTL 106.75 19.36 24.89 The overdue
principal and
interest as
on 31.03.2013
has not been
paid till
balance sheet
date.
Grand
Total 2,262.42 74.17 106.35
Further, as informed to us, the loan facilities availed from UCO Bank
as working capital term loan (outstanding balance as on 31.3.2013
amounting to Rs.1.07 crores) and cash credit facilities (outstanding
balance as on 31.3.2013 amounting to Rs.7.15 crores) have become
non-performing asset (NPA) for the lender as the company has not paid
the dues within 90 days of payments being falling due.
xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares debentures and other securities.
xiii) In our opinion and according to the information and explanations
given to us the Company is not a chit fund or Nidhi/ mutual benefit
fund/ society. Therefore, the provisions of clause 4(xiii) of the order
are not applicable to the Company.
xiv) In our opinion and according to the information and explanations
given to us the Company is not dealing or trading in shares,
securities, debentures and other investments. Therefore, the provisions
of clause 4(xiv) of the order are not applicable to the Company.
xv) According to the information and explanations given to us, the
terms and conditions of the guarantees given by the Company for loans
taken by others from banks or financial institutions during the year
under audit, are not prejudicial to the interest of the Company.
xvi) In our opinion and according to information and explanations given
to us, the term loans have been applied for the purpose for which these
were raised.
xvii) On the basis of overall examination of the Balance Sheet of the
Company and according to the information and explanations given to us,
in our opinion the funds raised on short-term basis have not been used
for long-term investment.
xviii) According to the information and explanations given to us,
during the period under reference the Company has not made preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
xix) According to the information and explanations given to us, the
Company has not issued any debentures. Therefore, the provisions of
clause 4(xix) of the order are not applicable to the Company.
xx) According to the information and explanations given to us, the
Company has not raised any money by public issues during the year under
audit. Therefore, the provisions of clause 4(xx) of the order are not
applicable to the Company.
xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no material
fraud on or by the Company has been noticed or reported during the year
under audit.
For Sunil Jain & Co.
Chartered Accountants
(Registration No. 003855N)
Sd/-
Sanchit Jain
Place New Delhi Partner
Date : May 27, 2013 Membership No. 511714
Mar 31, 2012
1. We have audited the attached Balance Sheet of AMIT SPINING
INDUSTRIES LIMITED as at March 31, 2012 and also the related Profit and
Loss Account and Cash Flow Statement of the Company 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the auditing 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.
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India in terms of sub section (4A) of
section 227 of the Companies Act, 1956 ("the Act"), we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Attention is drawn to:
(a) Note No. 29 with respect to recoverability of amount of Rs.
1,93,46,572 in respect of duty drawbacks.
(b) Note No. 33 with respect to realizability of amount of Rs.
8,78,24,766 in respect of deferred tax asset.
We report that had the Company decided to write off the sums as
mentioned above, the loss for the year would have been greater by Rs.
10,71,71,338 and would have amounted to Rs. 40,73,41,899 (as against
the reported figure of Rs. 30,01,70,561), with a consequential effect
on Accumulated losses, Loans and Advances and Deferred Tax Asset.
5. Without qualifying our opinion, attention is also drawn to Note
No.30 regarding preparation of accounts on a going concern basis due to
reasons indicated therein.
6. Further to our comments referred to in paragraphs 3, 4 and 5 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, 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 by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act;
(v) On the basis of written representations received from the directors
as on March 31, 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements give the
information required by the Act in the manner so required and subject
to our remarks in paragraph 4 above, 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, 2012;
b) In the case Profit and Loss Account, of loss for the year ended on
that date;
c) In case of 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 our report of even date)
i) a) The Company has maintained proper records showing full
particulars including quantitative details and the situation of its
fixed assets.
b) According to the information and explanations given to us, the
Company has a procedure to carry out physical verification of fixed
assets by the management, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books account.
c) During the year, the Company has not disposed off substantial part
of its fixed assets, so as to affect its going concern.
ii) a) The company has conducted physical verification of inventory at
reasonable intervals during the year.
b) In our opinion and according to information and explanations given to
us, the procedures for physical verification of inventory followed by
the management are reasonable having regard to the size of the Company
and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books account.
iii) a) According to the information and explanations given to us, 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) As the Company has not granted any such loans, provisions of clause
4(iii)(b), (iii)(c) and (iii)(d) of the Order are not applicable to the
Company.
c) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of 4(iii)(f) and (iii)(g) of the Order are not applicable to the
Company.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing major weaknesses in such internal controls.
v) a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
particulars or arrangements referred to in section 301 of the Companies
Act, 1956 have been entered in the register required to be maintained
under that section; and
b) during the year, there are no such transactions made in pursuance of
contracts or agreements entered in the register maintained under
section 301 of the companies Act, 1956, exceeding the value of Rupees
Five Lakhs in respect of any party during the year and hence, the
provisions of clause 4(v)(b) of the Order are not applicable to the
Company.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
during the year. Therefore, the provisions of clause 4(vi) of the Order
are not applicable to the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business
viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Companies Act, 1956 and are of opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
ix) (a) According to the information and explanations given to us and
records examined by us, the Company is generally regular in depositing
the 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
others material statutory dues with the appropriate authority.
(b) According to the information and explanations given to us, there
are no arrears of undisputed statutory dues as on March 31, 2012, for a
period of more than six months from the date they become payable.
(c) According to the information and explanations given to us, details
of dues of Excise Duty, which have not been deposited on account of any
dispute are given below.
S.No. Name of the Statute Nature of the dues Amount
(in Rupees)
1. Central Excise Act, Excise duty and 80,408
1994 penalty
2. Maharashtra Value Sales Tax and penalty 8,44,000
Added Tax (net of payment
of Rs. 2,00,000
under protest)
3. Employee's Provident Damages and Interest 15,94,349
Fund and Miscellaneous
Provisions Act, 1952
S.No. Period to which Forum where dispute
the amount relates pending
1. 2001-02 Central Excise and Service
Tax Appellate Tribunal
2. 2004-05 First Appellate Authority
3. 2003-06 First Appellate Authority
x) The accumulated losses at end of financial year are more than 50% of
its net worth. The Company has incurred cash loss before working
capital changes Rs. 18,18,94,013 during the financial year covered by
our audit whereas there was no cash loss in the immediately preceding
financial year.
xi) According to the information and explanations given to us and
records examined by us, we are of the opinion that the Company has
defaulted in repayment of the dues to a bank as infra. The Company did
not have outstanding dues to any financial institution and did not have
outstanding debentures during the year.
(Rs. in lacs)
Bankers Type of Loan Out Standing Overdue Overdue
as on 31.3.2012 Interest Principal
Axis Bank Term Loan 2270.98 58.10 67.80
(10% p.a.)
Axis Bank FITL (10% p.a.) 111.64 0.96 3.38
Axis Bank WCTL (10% p.a.) 99.37 2.57 3.00
UCO Bank WCTL 90.53 3.14 12.50
Grand Total 2572.52 64.77 86.68
Bankers Default status
Axis Bank The overdue principal and interest as on 31.03.2012
were paid on 30.06.2012
Axis Bank The overdue principal and interest as on 31.03.2012
were paid as on 30.06.2012
Axis Bank Out of the overdue principal and interest as on
31.03.2012, Rs. 5.25 lacs were paid as on
30.06.2012.
UCO Bank The overdue payments were unpaid as on date of
signing of balance sheet.
xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares debentures and other securities.
xiii) In our opinion and according to the information and explanations
given to us the Company is not a chit fund in Nidhi/ mutula benefit
fund/ society. Therefore, the provisions of clause 4(xiii) of the order
are not applicable to the Company.
xiv) In our opinion and according to the information and explanations
given to us the Company is not a dealing or trading in shares,
securities, debentures and other investments. Therefore, the provisions
of clause 4(xiv) of the order are not applicable to the Company.
xv) According to the information and explanations given to us, the
terms and conditions of the guarantees given by the Company for loans
taken by others from banks or financial institutions during the year,
are not prejudicial to the interest of the Company.
xvi) In our opinion and according to information and explanations given
to us, the term loans have been applied for the purpose for which these
were raised.
xvii) On the basis of overall examination of the Balance Sheet of the
Company and according to the information and explanations given to us,
in our opinion the funds raised on short-term basis have not been used
for long-term investment.
xviii) According to the information and explanations given to us,
during the period under reference the Company has not made preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
xix) According to the information and explanations given to us, the
Company has not issued any debentures. Therefore, the provisions of
clause 4(xix) of the order are not applicable to the Company.
xx) According to the information and explanations given to us, the
Company has not raised any money by public issues during the year under
reference. Therefore, the provisions of clause 4(xx) of the order are
not applicable to the Company.
xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no material
fraud on or by the Company has been noticed or reported during the year
under reference.
For Sunil Jain & Co.
Chartered Accountants
(Registration No. 003855N)
Sd/-
Sanchit Jain
Partner
Membership No. 511714
Place New Delhi
Date : August 7, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of AMIT SPINING
INDUSTRIES LIMITED as at March 31, 2011 and also the related Profit and
Loss Account and Cash Flow Statement of the Company 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the auditing 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.
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India in terms of sub section (4A) of
section 227 of the Companies Act, 1956 ("the ActÃ), we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Attention is drawn to:
(a) Note 5 of Schedule XXII (Notes to the accounts) with respect to
recoverability of amount of Rs. 6,01,84,142 from Schoeller Litvinov
k.s.
(b) Note 6 of Schedule XXII (Notes to the accounts) with respect to
recoverability of amount of 1,93,46,572 in respect of duty drawbacks.
(c) Note 14 of Schedule XXII (Notes to the accounts) with respect to
realizability of amount of 8,78,24,766 in respect of deferred tax
asset.
We report that had the Company decided to write off the sums as
mentioned above, the loss for the year would have been Rs.16,96,14,612
(as against the reported figure of Rs.22,59,132), Accumulated losses
would have been Rs.50,83,59,952 (as against the reported figure of
Rs.34,10,04,472), Sundry Debtors, Loans and Advances and Deferred Tax
Asset would have been Rs.5,29,27,049; Rs.15,86,15,439 and Rs.Nil
respectively (as against the reported figures of Rs.11,31,11,191;
Rs.17,79,73,011 and Rs.8,78,24,766 respectively).
5. Without qualifying our opinion, attention is also drawn to Note 7
on Schedule XXII (Notes to the accounts) regarding preparation of
accounts on a going concern basis due to reasons indicated therein.
6. Further to our comments referred to in paragraphs 3, 4 and 5 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, 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 by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act;
(v) On the basis of written representations received from the directors
as on March 31, 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements give the
information required by the Act in the manner so required and subject
to our remarks in paragraph 4 above, 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, 2011;
b) In the case Profit and Loss Account, of loss for the year ended on
that date;
c) In case of 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 our report of even date)
i) a) The Company has maintained proper records showing full
particulars including quantitative details and the situation of its
fixed assets.
b) According to the information and explanations given to us, the
Company has a procedure to carry out physical verification of fixed
assets by the management, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books account.
c) During the year, the Company has not disposed off substantial part
of its fixed assets, so as to affect its going concern.
ii a) The company has conducted physical verification of inventory at
reasonable intervals during the year.
b) In our opinion and according to information and explnations given to
us, the procedures for physical verification of inventory followed by
the management are reasonable having regard to the size of the Company
and nature of its business.
c) The company is maintaining proper records of invenory. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books account.
iii) a) According to the information and explanations given to us, 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) As the Company has not granted any such loans, provisions of clause
4(iii)(b), (iii)(c) and (iii)(d) of the Order are not applicable to the
Company.
c) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of 4(iii)(f) and (iii)(g) of the Order are not applicable to the
Company.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing major weaknesses in such internal controls.
v) a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
particulars or arrangements referred to in section 301 of the Companies
Act, 1956 have been entered in the register requied to be maintained
under that section; and
b) during the year, there are no such transactions made in pursuance of
contracts or agreements entered in the register maintained under
section 301 of the companies Act, 1956, exceeding the value of Rupees
Five Lakhs in respect of any party during the year and hence, the
provisions of clause 4(v)(b) of the Order are not applicable to the
Company.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
during the year. Therefore, the provisions of clause 4(vi) of the Order
are not applicable to the Company.
vii) In our opnion, the Company has an internal audit system
commensurate with its size and nature of its business
viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Companies Act, 1956 and are of opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete. ix) (a) According to
the information and explanations given to us and records examined by
us, the Company is generally regular in depositing the 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 others
material statutory dues with the appropriate authority.
(b) According to the information and explanations given to us, there
are no arrears of undisputed statutory dues as on March 31, 2011, for a
period of more than six months from the date they become payable.
(c) According to the information and explanations given to us, details
of dues of Excise Duty, which have not been deposited on account of any
dispute are given below:
S.No. Name of
the Statute Nature of
the dues Amount Period
to which Forum where dispute
pending
(in
Rupees) the amount
relates
1 Central
Excise Act,
1944 Excise
duty 80,408 2001-02 Central Excise and
Service Tax
and
penalty Appellate Tribunal
x) The accumulated losses at end of financial year are more than 50% of
its net worth. The Company has not incurred cash loss before working
capital changes during the financial year covered by our audit as well
as the immediately preceeding financial year. xi) According to the
information and explanations given to us and records examined by us, we
are of the opinion that the Company has not defaulted in repayment of
the dues to a financial institution or bank.
xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares debentures and other securities.
xiii) In our opinion and according to the information and explanations
given to us the Company is not a chit fund ir Nidhi/ mutula benefit
fund/ society. Therefore, the provisions of clause 4(xiii) of the order
are not applicable to the Company.
xiv) In our opinion and according to the information and explanations
given to us the Company is not a dealing or trading in shares,
securities, debentures and other investments. Therefore, the provisions
of clause 4(xiv) of the order are not applicable to the Company.
xv) According to the information and explanations given to us, the
terms and conditions of the guarantees given by the Company for loans
taken by others from banks or financial institutions during the year,
are not prejudicial to the interest of the Company..
xvi) In our opinion and according to information and explanations given
to us, the term loans have been applied for the purpose for which these
were raised.
xvii) On the basis of overall examination of the Balance Sheet of the
Company and according to the information and explanations given to us,
in our opinion the funds raised on short-term basis have not been used
for long-term investment.
xviii) According to the information and explanations given to us,
during the period under reference the Company has not made prefertial
allotment of shares to parties and companies covered in the regiseter
maintained under section 301 of the Companies Act, 1956..
xix) According to the information and explanations given to us, the
Company has not issued any debentures. Therefore, the provisions of
clause 4(xix) of the order are not applicable to the Company.
xx) According to the information and explanations given to us, the
Company has not raised any money by public issues during the year under
refernce. Therefore, the provisions of clause 4(xx) of the order are
not applicable to the Company.
xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no material
fraud on or by the Company has been noticed or reported during the year
under reference.
For Sunil Jain & Co.
Chartered Accountants
(Registration No. 003855N)
Sanchit Jain
Place New Delhi Partner
Date : May 10, 2011 Membership No. 511714
Mar 31, 2010
1. We have audited the attached Balance Sheet of AMIT SPINNING
INDUSTRIES LIMITED as at March 31, 2010 and also the related Profit and
Loss Account and Cash Flow Statement of the Company 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the auditing 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.
3. 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.
4. Attention is drawn to Notes 5 and 6 on Schedule XXII (Notes to the
accounts) with respect to recoverability of amounts from certain
debtors and loans and advances.
5. Without qualifying our opinion, attention is also drawn to Note 7
on Schedule XXII (Notes to the accounts) regarding preparation of
accounts on a going concern basis due to reasons indicated therein.
6. Further to our comments referred to in paragraphs 3, 4 and 5 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, 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 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 March 31, 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2010
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 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 March 31, 2010;
b) In the case Profit and Loss Account, of loss for the year ended on
that date;
c) In case of 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 our report of even date)
I) a) The Company has maintained proper records showing full
particulars including quantitative details and the situation of its
fixed assets.
b) According to the information and explanations given to us, the
Company has a procedure to carry out physical verification of fixed
assets by the management, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books account.
c) During the year, the Company has not disposed off substantial part
of its fixed assets, so as to affect its going concern.
ii) a) The company has conducted physical verification of inventory at
reasonable intervals during the year.
b) In our opinion and according to information and explanations given
to us, the procedures for physical verification of inventory followed
by the management are reasonable having regard to the size of the
Company and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books account.
iii) a) According to the information and explanations given to us, 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) As the Company has not granted any such loans, provisions of clause
4(iii)(b), (iii)(c) and (iii)(d) of the Order are not applicable to the
Company.
c) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of 4(iii)(f) and (iii)(g) of the Order are not applicable to the
Company.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing major weaknesses in such internal controls.
v) a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
particulars or arrangements referred to in section 301 of the Companies
Act, 1956 have been entered in the register requied to be maintained
under that section; and
b) during the year, there are no such transactions that made in
pursuance of need to be entered in the register maintained under
section 301 of the companies Act, 1956 and hence, the provisions of
clause 4(v)(b) of the Order are not applicable to the Company.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
during the year. Therefore, the provisions of clause 4(vi) of the Order
are ot applicable to the Company.
vii) In our opnion, the Company has an internal audit system
commensurate with its size and nature of its business
viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Companies Act, 1956 and are of opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
ix) (a) According to the information and explanations given to us and
records examined by us, the Company is generally regular in depositing
the 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
others material statutory dues with the appropriate authority.
(b) According to the information and explanations given to us, there
are no arrears of undisputed statutory dues as on March 31, 2010, for a
period of more than six months from the date they become payable.
(c) According to the information and explanations given to us, details
of dues of Excise Duty and Income Tax, which have not been deposited on
account of any dispute are given below:
S.No. Name of
the Statute Nature of
the dues Amount Period to
which Forum where
dispute
pending
(in
Rupees) the amount
relates
1 Central Excise
Act, 1944 Excise duty 80,408 2001-02 Central
Excise and
Service Tax
and penalty Appellate
Tribunal
2 Central Excise
Act, 1944 Excise duty 7,774,241 2004-05 Jurisdicti
onal
Officer,
Central
Excise
3 Central Sales
Act, 1956 Sales Tax
demand due to 10,19,645 2002-03 First Appe
llate
Authority
non-submission
of C forms
x) The accumulated losses at end of financial year are more than 50% of
its net worth. The Company has not incurred cash loss before working
capital changes during the financial year covered by our audit.
However, the Company incurred cash loss before working capital changes
of Rs.1,87,58,956 in the immediately preceeding financial year.
xi) According to the information and explanations given to us and
records examined by us, we are of the opinion that the Company has not
defaulted in repayment of the dues to a financial institution or bank.
xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares debentures and other securities.
xiii) In our opinion and according to the information and explanations
given to us the Company is not a chit fund ir Nidhi/ mutula benefit
fund/ society. Therefore, the provisions of clause 4(xiii) of the order
are not applicable to the Company.
xiv) In our opinion and according to the information and explanations
given to us the Company is not a dealing or trading in shares,
securities, debentures and other investments. Therefore, the provisions
of clause 4(xiv) of the order are not applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others and thus, the
provisions of clause 4(xv) of the order are not applicable to the
Company.
xvi) In our opinion and according to information and explanations given
to us, the term loans have been applied for the purpose for which these
were raised.
xvii) On the basis of overall examination of the Balance Sheet of the
Company and according to the information and explanations given to us,
in our opinion the funds raised on short-term basis have not been used
for long-term investment.
xviii) According to the information and explanations given to us,
during the period under reference the Company has not made prefertial
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956..
xix) According to the information and explanations given to us, the
Company has not issued any debentures. Therefore, the provisions of
clause 4(xix) of the order are not applicable to the Company.
xx) According to the information and explanations given to us, the
Company has not raised any money by public issues during the year under
reference. Therefore, the provisions of clause 4(xx) of the order are
not applicable to the Company.
xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no material
fraud on or by the Company has been noticed or reported during the year
under reference.
For Sunil Jain & Co.
Chartered Accountants
(Registration No. 003855N)
Sanchit Jain
Place New Delhi Partner
Date : August 9, 2010 Membership No. 511714
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