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Gini Silk Mills Ltd.

BSE: 531744 Sector: Industrials
NSE: N.A. ISIN Code: INE548B01018
BSE LIVE 12:54 | 23 Oct 300.00 3.20
(1.08%)
OPEN

300.90

HIGH

310.00

LOW

300.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 300.90
PREVIOUS CLOSE 296.80
VOLUME 11063
52-Week high 505.00
52-Week low 228.85
P/E 68.97
Mkt Cap.(Rs cr) 168
Buy Price 300.00
Buy Qty 185.00
Sell Price 304.00
Sell Qty 100.00
OPEN 300.90
CLOSE 296.80
VOLUME 11063
52-Week high 505.00
52-Week low 228.85
P/E 68.97
Mkt Cap.(Rs cr) 168
Buy Price 300.00
Buy Qty 185.00
Sell Price 304.00
Sell Qty 100.00

Gini Silk Mills Ltd. (GINISILKMILLS) - Auditors Report

Company 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 2017 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 in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements to 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 of 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

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 conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements 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 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 of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 2017 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' issued by the CentralGovernment of India in terms of subsection (11) of section 143 of the Act (hereinafterreferred to as the "Order") and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure A a statement on the matters specifiedin 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 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 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 information andexplanations given to us:

i. the Company has disclosed the impact of pending litigations as at March 31 2017 onits financial position in its financial statements to the extentdeterminable/ascertainable. - Refer Note 28 to the financial statements;

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 312017.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 as mentioned in Note 39 to the financial statements. Based onthe audit procedures and relying on the management representation we report that thedisclosures are in accordance with the books of accounts maintained by the Company and asproduced to us by the Management.

For Vatsaraj & Co.

Chartered Accountants

Firm Registration Number: 111327W

CA Nitesh K Dedhia

Partner

Membership Number: 114893

Mumbai May 27 2017

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 2017.

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 intervals; no material 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 assets to the financial statements are held in the name ofthe Company.

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 not grantedany loan secured or unsecured to companies firms Limited Liability Partnership firm orother parties covered in the register maintained under section 189 of the Companies Act2013 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 provisions of Section 185 and 186 of the Companies Act 2013in 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 the Companies Act 2013 in respect of itsproducts. Accordingly provision 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 appropriate authorities undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales tax Service TaxCustom Duty Excise Duty Value Added Tax Cess and other statutory dues applicable to itas 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 31st March2017 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
Textile Committee Act & Cess Rules 1975 Cess (Various years from 1998 to 2008) 709232/- Textile Committee Cess Appellate Tribunal
Central Excise Act Demand on differential amount of excise duty. (16/12/1998 to 28/02/2001) 18509688/- Supreme Court of India
Central Excise Act Demand against availment of cenvat credit. (Various years) 5678046/- Custom Excise and Service Tax Appellate Tribunal
total 24896966/-

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. Accordingly 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 compliance 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 27 2017

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 10(f) of the Independent Auditors' Report of even date to themembers of Gini Silk Mills Limited on the financial statements for the year ended March31 2017.

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 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

2. 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 (ICAI). 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 Act.

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 accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 exists and testing and evaluating the designand operating 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 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

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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

ii. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

iii. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 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 Vatsaraj & Co.

Chartered Accountants

Firm Registration Number: 111327W

CA Nitesh K Dedhia

Partner

Membership Number: 114893

Mumbai

May 27 2017.