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Deepak Spinners Ltd.

BSE: 514030 Sector: Industrials
NSE: DEEPAKSPIN ISIN Code: INE272C01013
BSE LIVE 15:40 | 18 Oct 82.65 1.85
(2.29%)
OPEN

81.00

HIGH

83.00

LOW

80.85

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 81.00
PREVIOUS CLOSE 80.80
VOLUME 2036
52-Week high 119.90
52-Week low 75.00
P/E 9.51
Mkt Cap.(Rs cr) 59
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 81.00
CLOSE 80.80
VOLUME 2036
52-Week high 119.90
52-Week low 75.00
P/E 9.51
Mkt Cap.(Rs cr) 59
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Deepak Spinners Ltd. (DEEPAKSPIN) - Auditors Report

Company auditors report

TO THE MEMBERS OF DEEPAK SPINNERS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of DEEPAK SPINNERS LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss the Cash Flow Statement and a summary of the significantaccounting policies and other explanatory information for the year then ended

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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors' 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 the accounting policies used and the reasonableness of the 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 financial statements give the information required by theCompanies Act 2013 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 2017 and its profit and its cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. 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 ofthe Companies Act2013 we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) 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 Note 16A to the financial statements

ii. The Company has no long-term contracts including derivative contracts havingmaterial foreseeable losses;

iii. The Company has no amount required to be transferred to the Investor Educationand Protection Fund.

iv. The Company has provided requisite disclosures in Note No. 26.17 to these financialstatements as to holding of Specified Bank Notes on November 8 2016 and December 30 2016as well as dealing in Specified Bank Notes during the period from November 8 2016 toDecember 30 2016. Based on our audit procedures and relying on the managementrepresentation regarding the holding and nature of cash transactions including SpecifiedBank Notes we report that these disclosures are in accordance with the book of accountsmaintained by the Company as produced to us.

For SINGHI & CO.
Chartered Accountants
Firm Reg. No.302049E
B. K. Sipani
Place : New Delhi Partner
Date : 22nd May 2017 Membership No. 088926

Annexure referred to in paragraph 1 of our report of even date on the other legal andregulatory requirements (Re: Deepak Spinners Limited)

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

b. Fixed assets have been physically verified by the management at regular interval. Nomaterial discrepancies were noticed on such verification.

c. According to information and explanations given by the management the title deedsof immovable properties included in fixed assets are held in the name of the companyexcept freehold land for Rs 2.42 Lakhs for which registration in the name of the Companyis pending.

(ii) The management has conducted physical verification of inventories at reasonableinterval during the year and no material discrepancies were noticed on such physicalverification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013. Therefore the provisions of clause 3(iii) of the order are notapplicable to the Company.

(iv) According to the information and explanations given to us the Company has notgranted any loan made investments or provided guarantees and securities in respect ofwhich provisions of section 185 and 186 of the Companies Act 2013 are applicable.Therefore the provisions of the clause 3(iv) of the order are not applicable to theCompany.

(v) The Company has not received any deposit during the year as covered under section76 of the Companies Act2013. Therefore provisions of clause 3(v) of the order are notapplicable to the Company.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148 (1)of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of the same.

(vii) a. According to the records of the Company the Company is generally regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand other material statutory dues deducted/accrued in the books with the appropriateauthorities. There were no undisputed outstanding statutory dues as at the yearend for aperiod of more than six months from the date they became payable.

b. According to the records of the Company there are no dues outstanding of incometax sales tax service tax duty of customs duty of excise and value added tax onaccount of any dispute other than the followings

Name of Statute Nature of Dues Amount Forum where Dispute is Pending Related Period
(Rs In lakhs)
The Central Excise Act 1944 Demand for Refund of Claim 45.07 Hon'ble High Court Gwalior 2001-2002
The Central Excise Act 1944 Demand for Service Tax Penalty and Interest 11.92 CESTAT 2004-05 to 2007-08
The Central Excise Act 1944 Demand for Excise Duty 7.97 CESTAT 2004-05 to 2007-08
Income Tax Act1961 Demand for excess credit allowed u/s 115JAA 19.74 CIT (Appeals) Kolkata Assessment year 2002-03
Income Tax Act1961 Short Allowance of Credit of TDS and Excess charge of Interest u/s 234B&C 6.25 CIT (Appeals) Kolkata Assessment year 2011-12
Income Tax Act1961 Disallowance of Expenses etc. 1.21 DCIT (Appeal) Kolkata Assessment Year 2012-2013
Income Tax Act1961 MAT Credit Disallowance 45.66 CIT (Appeals) Kolkata Assessment year 2015-16
Himachal Pradesh Tax on Entry of Goods into Local Area Act-2010 Entry Tax 543.56 Additional Commissioner of Central Excise Jammu 2010-11 to 2016-17

(viii) The Company has not defaulted in repayment of dues to banks. The company did nothave any outstanding loan from any financial institution and Government and dues todebenture holders.

(ix) The Company has not raised any monies by way of initial public offer or furtherpublic offer (including debt instruments). Further in our opinion and according to theexplanations given to us term loans were applied for the purpose for which loans wereraised.

(x) Based upon the audit procedures performed in accordance with generally acceptedauditing practice in India for the purpose of reporting the true and fair view of thefinancial statements and according to the information and explanations given to us nofraud by the Company or no fraud on the Company by its officers and employees has beennoticed or reported during the year.

(xi) According to the information and explanations given by the management managerialremuneration has been paid /provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a Nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotments or private placement ofshares or fully or partly convertible debentures during the year under review. Thereforethe provisions of clause 3(xiv) of the Order are not applicable.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withdirectors. Therefore the provisions of clause 3(xv) of the Order are not applicable.

(xvi) In our opinion the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Therefore the provisions of clause 3 (xvi) of theorder are not applicable.

For SINGHI & CO.
Chartered Accountants
Firm Reg. No.302049E
B. K. Sipani
Place : New Delhi Partner
Date : 22nd May 2017 Membership No. 088926

Annexure – B

Report on the Internal Financial controls under Clause (i) of Sub - section 3 ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of DeepakSpinners limited (‘the Company") as of March 31 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that 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 the 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 as 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 of and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exist 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.

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 preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorization 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 controlsover 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 March31 2017 based on theinternal control over the financial reporting criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For SINGHI & CO.
Chartered Accountants
Firm Reg. No.302049E
B. K. Sipani
Place : New Delhi Partner
Date : 22nd May 2017 Membership No. 088926