Nitin Spinners Limited
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Nitin Spinners Limited("The Company') which comprise the Balance Sheet as at 31stMarch 2017 theStatement of Profit and Loss and the 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 Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the act") with respect to 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 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 internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
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 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.
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 the 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall 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 on the financial statements.
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:
a) In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;
b) In the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and
c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
(i) As required by the Companies (Auditor's Report) Order 2016 issued by the Centralgovernment of India in the terms of Section 143 of the Companies Act 2013 we give in the"Annexure A" statement on the matters specified in Paragraph 3 & 4 of theorder.
(ii) 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 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 AccountingStandards referred to in Section 133 of the act read with Rule 7 of the Companies(Accounts) Rules 2014;
e) On the basis of written representations received from the Directors as on 31stMarch 2017 and 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 adequacy of internal financial controls over financial reporting ofthe Company and the operating effectiveness of such controls refer to our separate reportin "Annexure B" and
g) With respect to the other matters to be included in the Auditor's 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:
(a) The Company does not have any pending litigations which would materially impact itsfinancial position.
(b) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
(c) During the year the Company was not required to transfer any amount to InvestorEducation & Protection Fund .
(d) The Company has provided requisite disclosures (Refer note 24(B)(8)) in itsfinancial statements as to holdings as well as dealings in Specified Bank Notes during theperiod from 8th November 2016 to 30th December 2016 and these disclosures are inaccordance with the books of account maintained by the Company.
For R.S. DANI & CO.
(Firm Reg. No. 000243C)
Place : Bhilwara
Date : 6th May 2017
"ANNEXURE A" TO THE AUDITORS' REPORT
The annexure referred to in our paragraph Report on Other Legal andRegulatory Requirements" report to the members of Nitin Spinners Limited. for theyear ended 31st March 2017 as per information and explanations given to us we reportthat-
(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) these fixed assets have been physically verified by the management at reasonableintervals no material discrepancies were noticed on such verification.
(c) the title deeds of immovable properties are held in the name of the Company
(ii) Physical verification of inventory has been conducted at reasonable intervals bythe management and no material discrepancies were noticed on such verification.
(iii) The Company has not granted any loans secured or unsecured to the companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder Section 189 of the Companies Act 2013.
(iv) In respect of loans investments guarantees and security the provisions ofSection 185 and 186 of the Companies Act 2013 have been complied with.
(v) The Company has not accepted any deposits.
(vi) The maintenance of cost records has been specified by the Central Government undersub-Section (1) of Section 148 of the Companies Act 2013 and such accounts and recordshave been so made and maintained.
(vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxduty of customs duty of excise value added tax cess and any other statutory dues to theappropriate authorities. There are no arrears of outstanding statutory dues as on the lastday of the financial year concerned for a period of more than six months from the datethey became payable.
(b) There are no dues of income tax or sales tax or service tax or duty of customs orduty of excise or value added tax which have not been deposited on account of any disputeexcept as follows:
|S. No. ||Name of Statute ||Nature of Dues ||Unpaid Amt (Rs. in Lacs) ||Year ||Forum which at pending/ Remarks |
|1. ||Central Excise ||Excise Duty and Penalty ||12.02 ||2007-08 ||CESTAT New Delhi |
|2. ||Central Excise ||Excise duty and Penalty ||20.37 ||2000-01 ||Commissioner (A) Jaipur |
|3. ||Central Excise ||Custom Duty and Penalty ||37.72 ||2008-09 ||CESTAT New Delhi |
|4. ||Central Excise ||Penalty ||15.97 ||2008-09 ||CESTAT New Delhi |
|5. ||Central Excise ||Excise Duty ||463.54 ||2008-09 ||CESTAT New Delhi |
|6. ||Central Excise ||Excise Duty ||20.67 ||2008-09 ||CESTAT New Delhi |
|7. ||Service Tax ||Demand of Service Tax and Penalty ||93.65 ||2009-11 ||Commissioner (A) Jaipur |
(viii) The Company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders.
(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) however it has raised term loans which wereapplied for the purposes for which those are raised.
(x) There were no incident of fraud by he Company or any fraud on the Company by itsofficers or employees has been noticed or reported during the year.
(xi) The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theCompanies Act.
(xii) The Company is not a Nidhi Company.
(xiii) All transactions with the related parties are in compliance with Sections 177and 188 of the Companies Act 2013 where ever applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards.
(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.
(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with him.
(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
For R.S. DANI & CO.
(Firm Reg. No. 000243C)
Place : Bhilwara
Date : 6th May 2017
"ANNEXURE B" to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of SubSection 3 of Section143 of the Companies Act 2013 ("the Act").
We have audited the internal financial controls over financial reporting of NitinSpinners Limited ("The Company") as of 31st March 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 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'). 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 the 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 the Companies Act 2013.
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 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
The 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. The Company's internal financial control over financialreporting includes those policies and procedures that:
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;
(2) 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 authorisations of management and directors of the Company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised 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
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 of 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.
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 31st March 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 R.S. DANI & CO.
(Firm Reg. No. 000243C)
Place : Bhilwara
Date : 6th May 2017