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Amarjothi Spinning Mills Ltd.

BSE: 521097 Sector: Industrials
NSE: AMARJOTHI ISIN Code: INE484D01012
BSE 00:00 | 24 Apr 131.80 1.75
(1.35%)
OPEN

129.00

HIGH

133.70

LOW

129.00

NSE 05:30 | 01 Jan Amarjothi Spinning Mills Ltd
OPEN 129.00
PREVIOUS CLOSE 130.05
VOLUME 1290
52-Week high 249.95
52-Week low 116.00
P/E 8.48
Mkt Cap.(Rs cr) 89
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 129.00
CLOSE 130.05
VOLUME 1290
52-Week high 249.95
52-Week low 116.00
P/E 8.48
Mkt Cap.(Rs cr) 89
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Amarjothi Spinning Mills Ltd. (AMARJOTHI) - Auditors Report

Company auditors report

 

 

 

ON THE STANDALONE FINANCIAL STATEMENTS

 

To

 

The Members of

 

M/s. Amarjothi Spinning Mills Limited

Report on the Standalone Financial Statements:-

I have audited the accompanying standalone financial results ofAmarjothi Spinning Mills Limited which comprise the Balance sheet as at 31st March 2017the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone FinancialStatements:

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies' Act 2013 (The Act)with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under section 133of the Act read with Rule 7 of the Companies (Accounts) Rule2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies making judgements and estimates that are reasonable andprudent and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility:

My responsibility is to express an opinion on these Standalonefinancial statements based on my audit.

I have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.

I conducted my audit in accordance with the Standards on Auditingspecified u/s 143(10) of the Act. These standards require that I 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 evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by Company's Directors as well asevaluating the overall presentation of the financial statements.

 

I believe that the audit evidence I have obtained is sufficientand appropriate to provide a basis for my Audit Opinion on the Standalone financialstatements.

OPINION:-

In my opinion and to the best of my information and according tothe explanations given to me the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2017 and its PROFIT and its CASH FLOWS for theyear ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:-

As required by the Companies (Auditor's Report) Order 2016(‘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 mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143 (3) of the Act I report that:

A. I have sought and obtained all the information andexplanations which to the best of my knowledge and belief were necessary for the purposesof my audit.

B. In my opinion proper books of accounts as required by lawhave been kept by the company so far as it appears from my examination of those books.

C. NOTAPPLICABLE.

D. The Balance Sheet the Statement of Profit and Loss and theCash Flow Statement dealt with by this Report are in agreement with the books of account.

E. In my opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified u/s 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

F. On the basis of the written representations received from thedirectors as on 31st March 2017 and taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2017 from being appointed as a director interms of section 164(2) of the Act.

G. With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to my separate Report in Annexure - B.

H. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in my opinion and to the best of my information and according to the explanationsgiven to me;

1. The Company does not have any pending litigations which wouldimpact its financial position.

2. The Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses.

3. There has been no delay in transferring amounts required tobe transferred to the Investor Education and protection Fund by the Company.

4. The Company has else where specified the details regardingdemonitisation and the deposit of demonitised notes within the specified period asrequired in the amendment to schedule III to the Companies Act 2013. This is given as perrule II(d) of the Companies (Auditors) Amendment Rules 2017.

Place : Coimbatore V.NARAYANASWAMI
Date : 29.05.2017 Chartered Accountant.
Membership No: 023661.

 

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ONTHE STANDALONE FINANCIAL STATEMENTS OF AMARJOTHI SPINNING MILLS LIMITED.

(Referred to in paragraph (1) under ‘Report on other legaland regulatory requirements' of my report of even date)

In terms of the information and explanations sought by me andgiven by the company and the books and records examined by me in the normal course ofaudit and to the best of my knowledge and belief I report the following:-

1. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

 

(b) The fixed assets have been physically verified by themanagement during the year which in my opinion is reasonable having regard to the size ofthe company and the nature of its assets. No material discrepancies were noticed on suchverification.

(c) The title deeds of all the immovable properties of thecompany shown under the Fixed Assets schedule are held in the name of the company.

2. The inventories have been physically verified by themanagement at reasonable intervals during the year. In my opinion the frequency of suchverification is reasonable and no material discrepancies were noticed at the time ofverification.

3. The Company has not granted loans secured or unsecured toCompanies Firms LLPs or other parties covered in the register maintained under section189 of the Act.

4. In respect of loans investments and guarantees theprovisions of Sections 185 and 186 of the Act have been complied with.

5. The Company has not accepted any deposits to which theprovisions of Sections 73 to 76 or any other relevant provisions of the Act and the rulesframed there under and the Directions issued by the RBI are applicable. Hence paragraph 3(5) of CARO is not applicable to the company.

6. I have broadly reviewed the books of accounts maintained bythe Company pursuant to the Rules made by the Central Government for the maintenance ofcost records under section 148 of the Act and I am of the opinion that prima facie theprescribed accounts and records have been made and maintained. I have not however made adetailed examination of the cost records with a view to determining whether they areaccurate or complete.

7. (a) Undisputed statutory dues including PF or ESI IncomeTax sales tax service tax Excise duty customs duty VAT cess etc have been regularlydeposited by the Company with the appropriate authorities in all cases during the year.

 

(b) There are no dues of income tax sales tax customs dutyexcise duty service tax VAT or cess etc which have not been deposited on account of anydispute. A sum of Rs.2102183 has not been paid being Generation tax payable on electricitycharges. The matter is under dispute and pending with the honourable high court of Madras.No provision has been made for this in the books.

8. The Company has not defaulted in repayment of loans taken fromFinancial Institution Banks Government or dues to Debenture holders.

9. The Company has not raised any money by way of Initial Publicoffer/Further Public offer during the year. In my opinion the moneys raised by way ofTerm Loans during the year have been applied for the purposes for which those are raised.

Place : Coimbatore V.NARAYANASWAMI
Date : 29.05.2017 Chartered Accountant.
Membership No: 023661.

 

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ONTHE STANDALONE FINANCIAL STATEMENTS OF AMARJOTHI SPINNING MILLS LIMITED.

Report on the Internal Financial Controls under clause (i) of subsection 3 of Section 143 of the Companies Act 2013 ("The Act").

I have audited the internal financial controls over financialreporting of Amarjothi Spinning Mills Limited ("the Company") as of 31st March2017 in conjunction with my audit of the standalone financial statements of the companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls:

The Company's management is responsible for establishing andmaintaining internal financial controls based on "the internal control over financialreporting criteria established by the company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate InternalFinancial Controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility:

My responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on my audit. I conducted myaudit in accordance with the Guidance Note on Internal Financial Controls Over FinancialReporting ("the Guidance Note") and the Standards on Auditing issued by the ICAIand deemed to be prescribed under section 143(10) of the Companies' Act 2013 to theextent applicable to an audit of internal financial controls both issued by the Instituteof Chartered Accountants of India. Those standards and the Guidance Note require that Icomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

My audit involves performing procedures to obtain evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. My audit of internal financial controls over financial reportingincluded obtaining an understanding of internal 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 risks ofmaterial misstatement of the financial statements whether due to fraud or error.

I believe that the audit evidence I have obtained is sufficientand appropriate to provide a basis for my audit opinion on the Company's internalfinancial controls system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING:

A Company's internal financial control over financial reportingis a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that:-

(a) Pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company.

(b) Provide reasonable assurance that transactions are recordedas necessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(c) Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company's assets thatcould have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVERFINANCIAL REPORTING:-

Because of the inherent limitations of internal financialcontrols over financial reporting including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financial controlsover financial reporting to future periods are subject to the risk that the internalcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

OPINION:-

In my opinion the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at March312017 based on "the internal control over financial reporting criteria establishedby the company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India".

Place : Coimbatore V.NARAYANASWAMI
Date : 29.05.2017 Chartered Accountant.
Membership No: 023661.