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Adinath Textiles Ltd.

BSE: 514113 Sector: Industrials
NSE: N.A. ISIN Code: INE207C01019
BSE LIVE 13:41 | 24 Mar 5.08 -0.22
(-4.15%)
OPEN

5.08

HIGH

5.08

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NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 5.08
PREVIOUS CLOSE 5.30
VOLUME 50
52-Week high 5.34
52-Week low 1.39
P/E 28.22
Mkt Cap.(Rs cr) 3.46
Buy Price 5.08
Buy Qty 50.00
Sell Price 5.30
Sell Qty 500.00
OPEN 5.08
CLOSE 5.30
VOLUME 50
52-Week high 5.34
52-Week low 1.39
P/E 28.22
Mkt Cap.(Rs cr) 3.46
Buy Price 5.08
Buy Qty 50.00
Sell Price 5.30
Sell Qty 500.00

Adinath Textiles Ltd. (ADINATHTEXTILES) - Auditors Report

Company auditors report

To

The Members

ADINATH TEXTILES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of ADINATH TEXTILESLTD.("the Company") which comprise the Balance Sheet as at March 31 2016 andthe Statement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ('the Act') with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgements and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of these financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the Audit Report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Board of Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March312016 and its profits and 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 2016 ('the Order') issued bythe Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure "A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) On the basis of the written representations received from the Directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a Director in terms of Section 164(2) of theAct;

f) In our opinion there are no matters or financial transactions which may have anyadverse effect on the functioning of the company.

g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure "B" and;

h) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has no pending litigations on its financial position in its financialstatements as on March 312016ancial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There are no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.

For DASS KHANNA & Co.
Chartered Accountants
Firm's Reg. No. 000402N
Place : Ludhiana CA RAKESH SONI
Date : 25-05- 2016 Partner
Membership No. 083142

ANNEXURE- A TO THE INDEPENDENT AUDITORS- REPORT

(Referred to in paragraph 1 of Our Independent Report of even date to the Members ofADINATH TEXTILES Ltd.on the accounts of the company for the year ended 31st March 2016).

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and natureof its assets.

(c) According to the information & explanation given to u s and on the basis of ourexamination of the records the company the title deeds of immovable property are held inthe name of the company.

(i i) According to information and explanations given to us the inventories have beenphysically verified during the year by the management at reasonable intervals. In ouropinion the frequency of verification is reasonable. As explained to us thediscrepancies noted on verification between the physical stocks and the book records werenot material and have been dealt with.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under Section 189 of the Companies Act 2013. Consequently theprovisions of clause iii (a) iii (b) and iii(c) of the order are not applicable to thecompany.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits during the year and does not have any unclaimeddeposits. Therefore the provisions of the clause 3 (v) of the Order are not applicable tothe Company.

(vi) As per information & explanation given by the management maintenance of costrecords is not required to be maintained as required as per Rule 3 of Companies (CostRecords and Audit) Amendment Rules 2014.

(vii) According to the information and explanations given to us in respect ofstatutory dues

(a) According to the information and explanations given to us following are theundisputed am oun ts payable in respect of Statutory dues including Provident FundSales-tax are in arrears as at 31 March 2016 for a period of more than six months fromthe date they became payable.

Nature of Dues Amount in (Rs.)
Sales Tax 2277956
Entry Tax 237798
Interest on PF/ESI/ Sales Tax 1847720

(b) According to the information and explanations given to us the disputed statutorydues aggregating to Rs. 1000000/- that have not been deposited on account of matterspending before the appellate authorities in respect of custom duty and excise duty are asfollows.

Forum where dispute is pending Nature of Dues Disputed ' Amount (Rs.)
1. V Commissioner Central Excise & Customs Chandigarh Penalty 1000000** J

** Note: However Rs. 500000/- has been deposited under protest.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to a bank during the year and did nothave any amount outstanding to financial institutions or debenture holders.

(ix) The company has not raised money by way of initial public offer or further publicoffer or term loan and hence clause (ix) of paragraph 3 of the Order is not applicable tothe company.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud on or by the Company has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid in accordance with the requisite approvals mandatedby the provisions of section 197 read with schedule V to the Companies Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the paragraph 3(xiii) of Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of records of the Company transactions with the related parties are inCompliance with Section 188 and 177 of Companies Act 2013 where applicable and detailshave been disclosed in the financial Statements as required by the applicable accountingstandards.

(xiv) According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not made any preferentialallotment/private placement of shares or fully or partly convertible debentures during theyear.

(xv) According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected to him. Accordingly the paragraph 3(xv)of Order is not applicable.

(xvi) To the best of our knowledge and as explained the company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934.

For DASS KHANNA & Co.
Chartered Accountants
Firm's Reg. No. 000402N
Place : Ludhiana CA RAKESH SONI
Date : 25-05- 2016 Partner
Membership No. 083142

Annexure B to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of sub section 3 of Section143 of the Companies Act 2013 ('the Act')

We have audited the Internal Financial Controls over financial reporting of Ad inathTextiles Ltd. ('the Company') as of 31 March 2016 in conjunction with our a udit of thefinancial statements of the Company for the year ended on that date.

Management Responsibility for Internal Financial Controls

The Company's management is responsible of establishing and maintaining internalfinancial controls based on the internal control over financial reporting criterionestablished by the company considering the ess ential components of internal controlstated in the Guida nce N ote on Audit of Internal Financial Controls over financialreporting issued by the Chartered Accountants of India ('ICAI').These responsibilitiesinclude the designimplementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and timely preparation of reliable financial information as requiredunder the Companies Act2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note on Internal FinancialControls over Financial Reporting (the 'Guidance Note') and the Standards on Auditingspecified under Section 143(10) of the Company Act 2013 to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risk ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that(1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company(2) provide reasonable assurance thattransactions are recorded as necessary to permit preparations of financial statements inaccordance with generally accepted accounting principles and the receipts andexpenditures of the company are being made only in accordance with authorizations of theManagement and directors of the Company; and(3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements .

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrol material misstatements due to error or fraud may occur and may not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial reporting issued by the Institute of CharteredAccountants of India.

For DASS KHANNA & Co.
Chartered Accountants
Firm's Reg. No. 000402N
Place : Ludhiana CA RAKESH SONI
Date : 25-05- 2016 Partner
Membership No. 083142