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Bhilwara Spinners Ltd.

BSE: 514272 Sector: Industrials
NSE: N.A. ISIN Code: INE436C01014
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NSE 05:30 | 01 Jan Bhilwara Spinners Ltd
OPEN 8.00
PREVIOUS CLOSE 8.00
VOLUME 100
52-Week high 13.80
52-Week low 6.51
P/E 133.33
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.00
CLOSE 8.00
VOLUME 100
52-Week high 13.80
52-Week low 6.51
P/E 133.33
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bhilwara Spinners Ltd. (BHILWARASPINNER) - Auditors Report

Company auditors report

To

The Members of Bhilwara Spinners Ltd.

Report on the Financial Statements

We have audited the accompanying finacial statements of Bhilwara Spinners Limited ('theCompany') which comprise the Balance Sheet as at 31 March 2017 the Statement of Profitand Loss and the Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information. Management's Responsibility for thestandalone 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 andpresentation 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 the Companies (Accounts)Rules 2014 This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making Judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement 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 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 obtainresonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statemens. The procedures selected depend on theauditors' judgment including the assessment of the risk of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 the accounting policies used and the reasonableness ofthe accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 Standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India ofthe state of affairs ofthe Company asat March 31 2017 and its profit and its Cash Flow for the year ended on that date.

Report on Other Legel 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 sub-section (11) of Section 143 ofthe Act wegive in the Annexure A a statement on the matters specified in the paragraph 3 and 4ofthe order.

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

a. We have sought and obtaioned all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit:

b. In our opinon 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. On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in

terms of Section 164 (2) ofthe Act;

e. With respect to the adequacy ofthe internal financial controls over financialreporting ofthe Company and the operating effectivencess of such controls refer toourseparate report in 'Annexure B'; and

f. 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 disclosed the impact of pending litigations on its financialposition in its financial statements- Refer to Note 20 to the fincial statements;

ii. The company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Procection Fund by the Company.

iv. The company has provided disclosures in its financial statements as to holdings aswell as dealings in Specified Bank Notes (SBN) during the period from 8thNovember 2016 to 30th December 2016 and the same are in accordance with booksof accounts maintained by the company. Refer note no. 28 in the Notes to FinancialStatements.

Place: Bhilwara For CLB &ASSOCIATES
Date : 30-5-2017 Chartered Accountants
F.R. No. 124305W
CA. S. Sarupria
Partner
M.No. -035783

Annexure A to the Auditor's Report

Referred in paragraph 1 of Our Report of even date to the members of Bhilwara SpinnersLimited on the financial statements as of and for the year ended 31st March2017

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 recrods showing full particulars includingquantitative details and sisuation of fixed assets;

(b) . As explained to us fixed assets have been physically verified by the managementat regular intervals; as informed to us no material discrepancies were noticed on suchverification;

(c) According to the informaition and explanations given to us and on the basis of ourexamination of the record of the company the title deeds of immovable properties are heldin the name of company

ii. a) The Management has conducted physical verification of inventory at reasonableinterval.

b) The procedure of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

c) The company is maintaining proper records of iventory and no material discrepancieswere noticed on physical verification as compared to book records

iii. The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanations given to us thecompany has not made any contravention with the provision of section 185 or 186 of theCompanies act 2013 In respect of loansinvestments guarantees and security.

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

vi. In our opinion and according to the information and

explanations given to us the company has not defualted in repayment of dues to afinancial institution or bank.

vii. As informed to us the Central Government has not prescribed maintenance of costof cost records under sub-section (1) of Section 148 of the Act for any of the activitiesof the company

viii. (a) According to the infromation and explanations given to us and based on therecords of the company examined by us the company is regular in depositing the undisputedstatutory dues including Provident Fund Employees' State Insurance Income- taxSales-tax

Wealth Tax Service tax Custom Duty Excise Duty and other material statutory dues asapplicable with the appropriate authorities in India.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of incom tax wealth tax sales tax customs duty and excise duty wereoutstanding at the year end for a period of

more than six monts from the date they became payable.

(c) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Income Tax Wealth Tax Service TaxCustoms Duty and Excise Duty which have not been deposited on account of any disputes.

(d) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (inculding debt instruments) and term loans during the year.

x. According to the information and explanations given to us and based on ourexamination of the records of the company the company paid/provided for managerialremuneration in accordance with requisite approvals mandated by the provisions of section197 read with schedule V to the act

xi. According to the information and explanations given to usno material fraud by thecompany or on the company by its officers of employees has been noticed or reported duringthe course of our audit.

xii. In our opinion and according to the information and explanations given to us thecompany is not a nidhi company.

xiii. According to the information and explanations given 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.

xiv. According to the information and explanations given to us and based on ourexamination of the record of the company transactions with the related parties are incompliance with section 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.

xv. According to the information and explanations given to us and based on ourexamination oif the records of the company the company the company has not entered intonon-cash transations with director or persons connected with him.

xvi. The company is not required to be registered under section 45-IA or Reserve Bankof Indian Act 1934.

Place: Bhilwara For CLB &ASSOCIATES
Date : 30-5-2017 Chartered Accountants
F.R. No. 124305W
CA. S. Sarupria
Partner
M.No. -035783

Annexure B To the Auditor's Report

Report on Internal Financial Controls under Clause (i) of sub-section 3 of section 143of the companies Act 2013 ('the Act')

We have audited the internal financial controls over financial reporting of BhilwaraSpinners Limited as of 31" March 2017 in conjuction with our audit of the financialstatements of the company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Managements is responsible for establishing and maintaining internalfinancial control based on the internal control over financial reporting criteriaestablished by the company considering the essential components of internal control statedin the Guaidance Note on Audit Of Internal Financial Control over financial reportingissued by institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinculde 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 the company's policies the sefeguarding of its assetsthe prevention 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

Auditor's 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 deemed to beprescribed under Section 143 (10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of internal FinancialContros and both issued by the institute of Chartered Accountants of India. ThoseStandards and the Guidance Note required 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 interanal finacial controls system over financial reporting and their operatingeffectiveness. Our audit of internal finacial controls over finacial reporting includedobtaining an understanding of interanal 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 auditors' judgment including the assessment of the risks 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 to provide a basis for our audit opinion on the Company'sinternal financial controls system over financial reporting.

Meaning of Interanal 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 finacial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles A company's internal finacial control over financialreporting includes those policies and procedures that (I) 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 andexpendiures 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 Conrols over Financial Reporting

Because of the inherent limitations of internal finaancial 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 evlauation 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 internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Place: Bhilwara For CLB &ASSOCIATES
Date : 30-5-2017 Chartered Accountants
F.R. No. 124305W
CA. S. Sarupria
Partner
M.No. -035783