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Amit Spinning Industries Ltd.

BSE: 521076 Sector: Industrials
NSE: ASIL ISIN Code: INE988A01026
BSE LIVE 15:22 | 24 Mar 1.07 0.04
(3.88%)
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1.07

HIGH

1.07

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0.98

NSE LIVE 13:00 | 24 Mar 0.90 -0.05
(-5.26%)
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1.00

HIGH

1.00

LOW

0.90

OPEN 1.07
PREVIOUS CLOSE 1.03
VOLUME 1006
52-Week high 1.29
52-Week low 0.74
P/E
Mkt Cap.(Rs cr) 4.40
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.07
Sell Qty 8194.00
OPEN 1.07
CLOSE 1.03
VOLUME 1006
52-Week high 1.29
52-Week low 0.74
P/E
Mkt Cap.(Rs cr) 4.40
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.07
Sell Qty 8194.00

Amit Spinning Industries Ltd. (ASIL) - Auditors Report

Company auditors report

To the Members of AMIT SPINNING INDUSTRIES LIMITED

Report on the Financial Statements

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

Management's Responsibility for the Financial Statements

The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ('the act') with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility 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 judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting 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

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 thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement

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 management and Board of Directors as well as evaluatingthe overall presentation of the financial statements.

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

Basis for Qualified Opinion

We draw attention to:

(a) Note No. 29 with respect to recoverability of amount of Rs.15276144 in respectof dues recoverable from MSEB.

We report that had the Company decided to write off the sums as mentioned above theloss for the year would have been greater by Rs.15276144 and would have amounted toRs.165593083 (as against the reported figure of Rs.150316939) with a consequentialeffect on Accumulated losses and Loans and Advances.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2016 its loss and its cash flows for the year ended on that date

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

Note 30 in the financial statements which indicates that the Company has accumulatedlosses and its net worth has been fully eroded the Company has incurred a net cash lossduring the current and previous year(s) and the Company's current liabilities exceededits current assets as at the balance sheet date. These conditions along with othermatters set forth in Note 30 indicate the existence of a material uncertainty that maycast significant doubt about the Company's ability to continue as a going concern.However the financial statements of the Company have been prepared on a going concernbasis for the reasons stated in the said Note.

Our opinion is not modified in respect of these matters.

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 subsection (11) of section143 of theAct we give in the Annexure A a statement on the matters Specified in paragraphs 3 and 4of the Order.

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 bestof 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 theCompany so far as appears from our examination of those books;

c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. in our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e. The going concern matter described in sub-paragraph (b) under the Emphasis ofMatters paragraph above in our opinion may have an adverse effect on the functioning ofthe Company;

f. on the basis of written representations received from the directors as on March 312016 and taken on record by the Board of

Directors none of the directors is disqualified as on March 31 2016 from beingappointed as a director in terms of Section 164(2) of the Act;

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. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 25 to the financial statements;

(ii) The Company did not have any long-term contracts including derivative contracts;as such the question of commenting on any material foreseeable losses thereon does notarise;

(iii) There has not been an occasion in case of the Company during the year underreport to transfer any sums to the Investor Education and Protection Fund; as such thequestion of delay in transferring such sums does not arise.

For Sunil Jain & Co.
Chartered Accountants
(Registration No. 003855N)
Sd/-
Sanchit Jain
Place New Delhi Partner
Date : May 25 2016 Membership No. 511714

Annexure A of our report of even date to the members of Amit Spinning IndustriesLimited on the accounts of the company for the year ended 31st March 2016

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

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

(b) As explained to us the fixed assets are physically verified by the managementaccording to a phased programmed designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets; as informed to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) (a) The company has conducted physical verification of inventory at reasonableintervals during the year. In our opinion the frequency of such verification isreasonable.

(b) The discrepancies noticed have been properly dealt with in the books account.

(iii) The company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Act. As the Company has not granted any such loans provisions ofclause 3(iii)(a) (iii)(b) and (iii)(c) of the Order are not applicable to the Company.

(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 Act with respectto the loans and investments made and guarantees given.

(v) The Company has not accepted any deposits from the public covered under Section 73to 76 of the Companies Act 2013

(vi) We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the Rules made by the Central Government of India themaintenance of cost records has been prescribed under (1) of Section 148 of the CompaniesAct 2013 and are of opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the recordswith a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is not regular in depositing theundisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Sales-tax Value Added Tax Wealth Tax Service Tax Custom Duty Excise Dutyand other material statutory dues as applicable with the appropriate authorities. Thearrears of undisputed outstanding statutory dues as on the last day of the financial yearconcerned for a period of more than six months from the date they became payable are asunder:

Nature of Dues Amount
Provident Fund 4138044
Professional Tax 310625
Service Tax 23988
Total 4472657

(b) According to the information and explanations given to us details of followinggovernment dues which have not been deposited on account of any dispute are given below:

Name of the statute Nature of dues Amount (Rs.) Period to which the amount relates Forum where the dispute is pending
1 Maharashtra Value Added Tax 2005 Sales Tax and penalty 1044000 (net of payment of Rs.200000 under protest) 2004-05 First Appellate Authority
2 Maharashtra Value Added Tax 2005 Sales Tax and penalty 964390(net of payment of Rs.1690614 by way of adjustment of refund) 2009-10 First Appellate Authority

(viii) According to the information and explanations given to us and records examinedby us we are of the opinion that the Company has defaulted in repayment of loans orborrowing to a bank as infra. The Company did not have outstanding dues to any financialinstitution and debentures during the year under audit. The loan facilities as mentionedbelow have become non-performing asset (NPA) for the lender as the company has not paidthe dues within 90 days of payments being falling due:

Bankers Type of Loan Out Standing as on 31.3.2016 Period of Default
Axis Bank Term Loan 111952183
Axis Bank FITL 5617448
Axis Bank WCTL 4901529
Axis Bank Short Term Loan 48277044 More than 90 days
Axis Bank Cash Credit 57627208
UCO Bank WCTL 9460163
UCO Bank Cash Credit 102114063
Grand Total 339949639

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

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

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

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

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

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Sunil Jain & Co.
Chartered Accountants
(Registration No. 003855N)
Sd/-
Sanchit Jain
Place New Delhi Partner
Date : May 25 2016 Membership No. 511714

Annexure B to the Independent Auditor's Report of Even Date on the Standalone FinancialStatements of Amit Spinning Industries Limited

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 AmitSpinning Industries Limited ("the Company") as of March 31 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

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 accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. 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.

We believe that the audit evidence I/we have obtained is sufficient and appropriate toprovide a basis for my /our audit opinion on the Company's internal financial controlssystem over 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 preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement 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 ofcontrols material misstatements due to error or fraud may occur and 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 March 31 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 Sunil Jain & Co.
Chartered Accountants
(Registration No. 003855N)
Sd/-
Sanchit Jain
Place New Delhi Partner
Date : May 25 2016 Membership No. 511714