ADITYA SPINNERS LIMITED
ANNUAL REPORT 2011-2012
The Members of
M/s ADITYA SPINNERS LIMITED
1. We have audited the attached balance sheet of M/s. Aditya Spinners
Limited as at March 31, 2012 and the related profit and loss Account for
the year ended on that date annexed there to and the cash flow statement of
the year ended on that date. These financial Statements are the
responsibility of the management of the Company. 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
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatements. 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 estimate 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 in terms of Section 227(4A) 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. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the company so far as it appears from our examination of those
c) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
d) In our opinion, these financial statements have been prepared in
compliance with the applicable accounting standards referred to in Section
211 (3C) of the companies Act, 1956.
e) Based on the representations made by all the Directors of the Company as
on March 31, 2012 and taken on record by the Board of Directors of the
Company and in accordance with the information and explanations as made
available, the Directors of the Company do not, prima face, have any
disqualification as referred to in Clause (g) of subsection (1) to Section
274 of the Companies Act 1956.
f) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956, in the manner so required and give a true and
fair view in conformity with the accounting principles generally accepted
(i) In the case of the Balance Sheet, of the State of affairs of the
Company as at March 31, 2012.
(ii) In the case of the profit and loss Account, of the loss for the year
ended on that date, and
(iii) In the case of cash flow statement, of the cash flows for the year
ended on that date.
For C. RAMACHANDRAM & CO.
Membership No. 025834
Date : 31st May, 2012.
ANNEXURE TO AUDITORS REPORT:
(Referred to in paragraph 3 of our report of even date)
1. (a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us the fixed assets have been physically verified by
the management during the year in a phased periodical manner, which in our
opinion is reasonable, having regard to size of the company and nature of
its assets. No material discrepancies were noticed on such physical
(c) In our opinion the Company has not disposed off substantial part of
fixed assets during the year and the going concern status of the company is
2. (a) As explained to us, inventories have been physically verified during
the year by the management. In our opinion, the frequency of verification
(b) In our opinion and according to the information and explanations given
to us, the procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) On the basis of our examination of the inventory records in our opinion
the Company is maintaining proper records of inventory. The Discrepancies
noticed on Physical verification of inventory as compared to book records
were not material.
3. (a) The Company has not granted any loans, secured or unsecured to
companies, firms, or other parties covered in the register maintained U/s
301 of the companies Act 1956.
(b) The Provisions of Clause (b), (c), and (d) of Paragraph 4(iii) of the
companies (Auditors Report) order, 2003 are not applicable to the company.
(c) The Company has taken loans from two parties covered in the register
maintained U/s.301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs.20.14 lakhs and the year end balance of loans
outstanding from such party was Rs.20.14 Lakhs.
(d) The rate of interest and other terms of loan as explained above, are
prima facie not prejudicial to the interest of the company.
(e) The loans taken by the company are repayable on demand.
4. In our opinion and according to the information and explanations given
to us, there is adequate internal control system commensurate with the size
of the company and the nature of its business with regard to purchase of
inventory, fixed assets and with regard to the sale of goods and services.
During the course of our audit, we have not observed any continuing failure
to correct major weaknesses in internal control system.
5. According to the information and explanations given to us, we are of the
opinion that there are no contracts or arrangements which need to be
entered in the register maintained under section 301 of the Act. In view of
this, paragraphs 4v(a) and 4v(b) of CARO are not applicable.
6. The Company has not accepted any deposits from the public within the
meaning of sections 58A and 58AA or any other relevant provisions of the
Company Act, 1956 and the ruled framed there under.
7. In our opinion the company has an internal audit system commensurate
with its size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the Company
in respect of manufacturing yarn, 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 Act and are of
the opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed examination of
the records with a view to determine whether they are accurate or complete.
9. (a) According to the information and explanation given to us, the
Company has been regular in depositing with appropriate authorities
undisputed statutory dues including investor education and protection fund,
wealth tax, custom duty, excise duty, service tax, cess, other statutory
dues to the extent applicable to it.
(b) According to the information and explanations given to us no undisputed
amounts payable in respect of income tax, wealth tax, services tax, custom
duty, excise duty and cess were in arrears as at March 31, 2012 for a
period of more than Six months from the date they became payable.
(c) According to the information and explanation given to us, there are no
dues of income tax, sales tax, excise duty, service tax, custom duty,
wealth tax and cess which have not been deposited on account of the
10. In our opinion the accumulated losses of the company are more than
fifty percent of its networth. The company has not incurred cash losses
during the financial year covered by our report and in the immediately
proceeding financial year.
11. In our opinion that the Company has not defaulted in repayment of dues
to a financial institution or debenture holders during the year.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the companies
(Auditor's Report) Order, 2003 are not applicable to the company.
14. In our opinion the Company has maintained proper records of transaction
and contracts relating to dealing or trading in shares, securities,
debentures and other investments and timely entries have been made therein.
The shares, debentures and other securities have been held by the Company
in its own name.
15. In our opinion and according in the information and explanations given
to us, the company has not given any guarantee for loans taken by others
from banks for financial institutions during the year.
16. The company has not raised any new term loans during the year. The term
loans out standings at the beginning of the year were applied for the
purposes for which they were raised.
17. According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that no
funds raised on short-term basis have been used for long-term investment.
18. The company has made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the Act
during the year. The No. of shares alloted is 91,40,000 shares at a price
of Rs.10/- each and the price at which shares have been issued is not
prejudicial to the interest of the company.
19. The company has not issued any debentures during the year.
20. The company has not raised any money by way of public issue during the
21. In our opinion and according to the information and explanations given
to us, no fraud on or by the company has been noticed or reported during
the year, that causes the financial statements to be materially misstated.
For C. RAMACHANDRAM & CO.,
Membership No. 02S834
Date : 31st May, 2012.