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Sambandam Spinning Mills Ltd.

BSE: 521240 Sector: Industrials
NSE: SAMBANDAM ISIN Code: INE304D01012
BSE LIVE 09:24 | 22 Aug 132.75 -1.75
(-1.30%)
OPEN

132.75

HIGH

132.75

LOW

132.75

NSE 00:00 | 29 Jan Stock Is Not Traded.
OPEN 132.75
PREVIOUS CLOSE 134.50
VOLUME 40
52-Week high 163.50
52-Week low 84.45
P/E 7.85
Mkt Cap.(Rs cr) 57
Buy Price 132.75
Buy Qty 10.00
Sell Price 137.00
Sell Qty 15.00
OPEN 132.75
CLOSE 134.50
VOLUME 40
52-Week high 163.50
52-Week low 84.45
P/E 7.85
Mkt Cap.(Rs cr) 57
Buy Price 132.75
Buy Qty 10.00
Sell Price 137.00
Sell Qty 15.00

Sambandam Spinning Mills Ltd. (SAMBANDAM) - Auditors Report

Company auditors report

To the Members of Sambandam Spinning Mills Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of SambandamSpinning Mills Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone 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 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 prescribedunder section 133 of the Act as applicable. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under and the order under Section143 (11) of the Act.

4. We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

5. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's 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 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.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

7. 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 of the state of affairs of the Companyas at March 31 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

8. 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 standalone financial statements comply with theAccounting Standards prescribed under section 133 of the Act as applicable.

e. On the basis of written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason 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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

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:

(.i) . The Company has in accordance with the generally accepted accounting practicedisclosed the impact of pending litigations on its financial position in its financialstatements.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses under the applicable law oraccounting standards.

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

9 As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143 (11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For M.S. Krishnaswami & Rajan
Chartered Accountants
Firm registration No.01554S
Salem R. Krishnen - Partner
May 21 2016 Membership No.201133

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 8 (f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

1. We have audited the internal financial controls over financial reporting ofSambandam Spinning Mills Limited ("the Company") as of March 31 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear 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. 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.

Auditor's 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 judgement 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 (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 to the best of our information and according to the explanationsgiven to us 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 March 31 2016 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.

For M.S. Krishnaswami & Rajan
Chartered Accountants
Firm registration No.01554S
Salem R. Krishnen - Partner
May 21 2016 Membership No.201133

"Annexure B" to the Independent Auditors' Report

Referred to in paragraph 9 under 'Report on Other Legal & Regulatory Requirement'section of our report of even date to the standalone financial statements of the Companyfor the year ended March 31 2016:

In respect of fixed assets:

1. (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of the fixed assets.

(b) The fixed assets have been physically verified by the Management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed assets has been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification.

(.c.) the title deeds of immovable properties of the Company are held in the name ofthe Company.

2. Inventories have been physically verified during the year by the management atreasonable intervals and no material discrepancies were noticed on such physicalverification.

3. (a) The Company has not granted any loans/guarantees secured or unsecured tofirms Limited Liability Partnerships or other parties covered in the Register maintainedunder section 189 of the Companies Act 2013 and accordingly the provisions of clause(iii) of paragraph 3 of the Order are not applicable to the Company.

(b) The Company has granted loan to one company covered in the register maintainedunder section 189 of the Companies Act 2013. In our opinion and based on the informationand explanations furnished to us We report that:

(.i) . the terms and conditions of grant of such loans are not prejudicial to theCompany`s interest.

(ii) The Schedule of repayment of principal and interest has been stipulated and suchrepayments are regular.

(iii) there are no amounts overdue

(iv) the provisions of Section 186 of the Companies Act 2013 have been complied withregard to the above loans.

4. According to the information and explanations given to us the Company has compliedwith the provisions of section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security.

5. According to the information and explanations given to us the Company has notaccepted any deposits from public and in respect of the deposits accepted fromshareholders the Company has complied with the directives issued by the Reserve Bank ofIndia and the provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the Companies (Acceptance of Deposit) Rules 2014.

6. We have broadly reviewed the books of account maintained by the Company pursuant tothe Rules made by the Central Government for the maintenance of cost records under section148 of the Companies Act 2013 and are of the opinion that prima facie the prescribedaccount and records have been made and maintained.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account records the Company has been generally regularin depositing undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax wealth tax service tax customs duty excise dutyvalue added tax cess and other statutory dues applicable to it with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the above were in arrears as at March 31 2016 for a periodof more than six months from the date on when they became payable.

(b) According to the information and explanations given to us there are no dues ofIncome tax Wealth tax and Customs duty which have not been deposited on account of anydispute with the relevant authorities. Details of dues towards excise duty service taxand sales tax and value added tax that have not been deposited as at March 31 2016 onaccount of disputes are stated below: (Nature of dues dues period to which the amountrelates forum where dispute is pending) – Excise duty Rs.8465342 Financial year2001-02 to 2002-03 Customs Excise and Service tax Appellate Tribunal; Service taxRs.805696 Financial year 2004-05 to 2007-08 Customs Excise and Service tax AppellateTribunal; Sales tax Rs.652044 Financial year 1991-92 Deputy Commissioner ofCommercial Taxes.

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. According to the informationand explanations given to us the company has not borrowed any moneys from a financialinstitution government or in the form of debentures.

9. Based upon the audit procedures performed and the information and explanations givenby the management the term loans were applied for the purposes for which the loans weretaken. The Company has not raised any money by way of initial public offer or furtherpublic offers including debt instruments. Hence reporting on utilization of such moneydoes not arise.

10. Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud of material significance by the Companyor any fraud on the Company by its officer's or employee's has been noticed or reportedduring the year.

11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.

12. The Company is not a Nidhi Company and accordingly the provisions of Clause 3 (xii)are not applicable to the Company.

13. In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act 2013. The details of the transactions during the year have been disclosedin the financial statements as required by the Accounting Standards.

14. Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the under review.Accordingly the provisions of clause 3 (xiv) of the Order are not applicable to theCompany and hence not commented upon.

15. Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not entered into any non - cash transactions withdirectors or persons connected with them. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

16. The Company is not required to be registered under section 45- IA of the ReserveBank of India Act 1934.

For M.S. Krishnaswami & Rajan
Chartered Accountants
Firm registration No.01554S
Salem R. Krishnen - Partner
May 21 2016 Membership No.201133