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Gini Silk Mills Ltd.

BSE: 531744 Sector: Industrials
NSE: N.A. ISIN Code: INE548B01018
BSE LIVE 15:59 | 22 Aug 252.55 -33.50
(-11.71%)
OPEN

299.00

HIGH

299.00

LOW

228.85

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 299.00
PREVIOUS CLOSE 286.05
VOLUME 72716
52-Week high 505.00
52-Week low 228.85
P/E 58.06
Mkt Cap.(Rs cr) 141
Buy Price 0.00
Buy Qty 0.00
Sell Price 252.55
Sell Qty 7.00
OPEN 299.00
CLOSE 286.05
VOLUME 72716
52-Week high 505.00
52-Week low 228.85
P/E 58.06
Mkt Cap.(Rs cr) 141
Buy Price 0.00
Buy Qty 0.00
Sell Price 252.55
Sell Qty 7.00

Gini Silk Mills Ltd. (GINISILKMILLS) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF GINI SILK MILLS LIMITED

REPORT ON THE FINANCIAL STATEMENTS

1. We have audited the accompanying financial statements of Gini Silk Mills Limited("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement 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 Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements to 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 of 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.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. 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.

5. We conductedourauditinaccordancewiththeStandardsonAuditingspecifiedunder Section143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors’ judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

7. 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

8. 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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by ‘the Companies (Auditor’s Report) Order 2016’ issuedby the Central Government of India in terms of subsection (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure A a statement on thematters specified in paragraphs 3 and 4 of the Order.

10. 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 March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct;

f) 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

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 knowledge and belief and according to the in- formation andexplanations given to us:

i. the Company has disclosed the impact of pending litigations as at March 31 2016 onits financial position in its financial statements to the extentdeterminable/ascertainable. - Refer Note 28 to the financial

ii. the Company does not have any long term contract including derivative contracts forwhich there are any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312016.

For Vatsaraj & Co.

Chartered Accountants

Firm Registration Number: 111327W

CA Nitesh K Dedhia

Partner

Membership Number: 114893

Mumbai May 30 2016

ANNEXURE A TO INDEPENDENT AUDITORS’ REPORT

Referred to in paragraph 9 of the Independent Auditors’ Report of even date to themembers of Gini Silk Mills Limited on the financial statements for the year ended March31 2016.

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

(b) As explained to us fixed assets have been physically verified by the management atreasonable discrepancies were noticed on such verification.

(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 asdisclosed in Note 11 on fixed financialstatements assetstothe are held in the name of theCompany.

ii The inventory excluding stocks with third parties has been physically verified bythe management at regular intervals which we consider to be reasonable. No materialdiscrepancies were noticed on physical verification of inventories as compared to bookrecords.

iii According to information and explanation given to us the Company’s has notgranted any loan secured or unsecured to companies firms Limited Liability Partnershipfirm or other parties covered in the register maintained under section 189 of theCompanies Act 2013 and hence sub clause (a) (b) and (c) are not applicable.

iv In our opinion and according to the information and explanations given to us theCompany has complied with the provi- sions of Section 185 and 186 of the Companies Act2013 in respect of the loans and investments made.

v The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.

vi According to the information and explanation given to us the rules made by theCentral Government of India the Company is not required to maintain cost records asspecified under sub section (1) of section 148 of respect of its products. Accordinglyprovision of Clause 3(vi) of the Order is not applicable.

vii (a) According to the information and explanations given to us the Company isgenerally regular in depositing with appro- priate authorities undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income Tax Sales tax ServiceTax Custom Duty Excise Duty Value Added Tax Cess and other statutory dues applicableto it as per the available records as far as ascertained by us on our verification.

According to the information and explanations given to us there were no undisputedamounts payable in respect of outstanding statutory dues as aforesaid as at 31stMarch 2016 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us dues in respect ofIncome tax Excise duty and Cess that have not been deposited with the appropriateauthorities on account of dispute are as under:

Name of the Statute Nature of Dues / Period to which the amount relates Amount (INR) Forum where dispute is pending
Excise Service Tax Demand for Deemed Credit 338418/- Customs Excise and service Tax
(February 2001 to October 2002) Appellate Tribunal
Textile Committee Act & Cess (Various years from 1998 to 709232/- Textile Committee Cess Appellate
Cess Rules 1975 2008) Tribunal
Central Excise Act Demand on differential amount 18509688/- Supreme Court of India
of excise duty. (16/12/1998 to
28/02/2001)
Central Excise Act Demand against availment of cenvat 5678046/- Custom Excise and Service Tax
credit. (Various years) Appellate Tribunal
Income Tax Act Demand for A.Y. 2012-2013 1451720/- Departmental Authorities
Total 26687104/-

viii According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of dues of loans takenfrom banks. The Company did not have any outstanding dues in respect of financialinstitution government or debenture holders during the year.

ix The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and according to the information and explanations givento us the term loans have been applied for the purposes for which they were obtained.

x During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practice in India and according toinformation and explanation given to us we have neither come across any instance of fraudon or by the Company its officers or employees noticed or reported during the periodnor have we been informed of such case by the management.

xi According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid or 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 the information and explanation given to us theCompany is not a Nidhi Company. Accord- ingly provision of Clause 3(xii) of the Order isnot applicable.

xiii According to the information and explanation given to us and based on ourverification of the records of the Company and on the basis of review and approval by theBoard and Audit Committee the transactions with related parties are in compli- ance withSection 177 and 188 of the Act where applicable and the details of such transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards.

xiv According to the information and explanation 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 period under review. Accordingly the provision of Clause 3(xiv) of the Order is notapplicable.

xv According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with its directors or persons connected with them. Accordingly the provisionof Clause 3(xv) of the 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 Vatsaraj & Co.

Chartered Accountants

Firm Registration Number: 111327W

CA Nitesh K Dedhia

Partner

Membership Number: 114893

Mumbai May 30 2016

ANNEXURE B TO INDEPENDENT AUDITORS’ REPORT

Referred to in paragraph 10(f) of the Independent Auditors’ Report of even date tothe members of Gini Silk Mills Limited on the financial statements for the year endedMarch 31 2016.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

1. We have audited the internal financial controls over financial reporting of GiniSilk Mills Limited ("the Company") as of March 31 2016 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

2. The Company’s management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI). 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 safeguardingof its 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 theAct.

Auditors’ Responsibility

3. 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 accord-ance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtainauditevidenceabouttheadequacyoftheinternalfinancialcontrols system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal reporting assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for our audit opinion on theCompany’sinternalfinancialcontrols systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that i. Pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the ii. Provide reasonable assurance thattransactions are recorded as necessary to permitpreparationoffinancialstatements inaccordance with generally ac -cepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and iii. 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

7. 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

8. In our opinion the Company has in all material respects an adequate internalfinancial controlssystemoverfinancialreporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2016 based on theinternalcontroloverfinancialreporting 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.

For Vatsaraj & Co.

Chartered Accountants

Firm Registration Number: 111327W

CA Nitesh K Dedhia

Partner

Membership Number: 114893

Mumbai May 30 2016