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Santaram Spinners Ltd.

BSE: 531323 Sector: Industrials
NSE: N.A. ISIN Code: INE250D01017
BSE LIVE 15:14 | 20 Sep 4.27 0.20
(4.91%)
OPEN

4.27

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4.27

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4.27

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 4.27
PREVIOUS CLOSE 4.07
VOLUME 500
52-Week high 4.47
52-Week low 3.70
P/E 22.47
Mkt Cap.(Rs cr) 3
Buy Price 3.87
Buy Qty 500.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.27
CLOSE 4.07
VOLUME 500
52-Week high 4.47
52-Week low 3.70
P/E 22.47
Mkt Cap.(Rs cr) 3
Buy Price 3.87
Buy Qty 500.00
Sell Price 0.00
Sell Qty 0.00

Santaram Spinners Ltd. (SANTARAMSPIN) - Auditors Report

Company auditors report

To

The Members

Santaram Spinners Limited

1. We have audited the financial statements of Santaram Spinners Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2016 and Profit and LossAccount and the Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information on that date annexed thereto.

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 that give 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 the assets of the Companyand for preventing and detecting fraud and other irregularities; selection and applicationof appropriate accounting policies; making judgments and estimates that are reasonable andprudent ; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofaccounting records relevant to the preparation and presentation of the financialstatements that give true and fair view and are free from material misstatement whetherdue to fraud or error.

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act 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 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.

4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentthe auditor considers internal financial control relevant to the Company’spreparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company’s Director as well asevaluating the overall presentation of the financial statements.

5. 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.

6. In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 2016 ; and

(b) in the case of the Profit and Loss Account of the profit for the year ended onthat date ; and

(c) In the case of Cash Flow statement of the cash flows for the year ended on thatdate.

7. As required by the Companies (Auditor’s report) Order 2015 ("the Order)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we hereby provide the details as required in the paragraph 3 and 4of the said Order in Annexure-A to Independent Auditor’s Report.

8. As required by section 143(3) of the Act we further 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 accounts 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 & Loss Account and 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 applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) On the basis of written representation received from the directors as on 31stMarch 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms ofsub-section (2) of section 164 of the Act;

(f) With respect to the adequacy of Internal Financial Controls over FinancialReporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure B to Independents Auditor’s Report.

(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 has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in Note 30(A) to the financialstatements.

(b) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long term contractsincluding derivative contracts.

(c) There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.

For and on Behalf of
Jayesh M. Shah & Co.
Chartered Accountants
F.R.N. 104173W
Jayesh M. Shah
Place : Ahmedabad Proprietor
Date : 30th May 2016 Mem. No.: 30638

ANNEXURE A TO THE AUDITORS’ REPORT

(Referred to in paragraph 7 of the Auditors’ Report of even date to the members ofSantaram Spinners Limited on the financial statements for the year ended 31st March2016.)

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

(b) As explained to us a substantial portion of the fixed assets have been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification.

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

2. (a) As per information and explanation given to us inventory of rawmaterials/finished goods/traded goods/ spares and consumables has been physically verifiedby the management at regular intervals. In our opinion the frequency of verification isreasonable.

(b) On the basis of our examination of the inventory records produced before us and inour opinion the Company is maintaining proper records of inventory. The discrepanciesnoticed on physical verification of inventory as compared to book records were notmaterial and have been properly dealt with in books of accounts.

3. (a) The company has not granted loans secured or unsecured to firms Companies orother parties covered in the register maintained under Section 189 of the Companies Act2013. Hence paragraph 3(b) and 3(c) of the Order is not applicable.

4. As explained to us there is no transaction of loans investments guarantees andsecurity prescribed in the provision of Section 185 and 186 of the Companies Act2013during the year under audit. Consequently requirement of clause (iv) of paragraph of theOrder is not applicable.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted Deposits during the year and consequently directives issued byReserve Bank of India and the provisions of Section 73 to 76 or any other relevantprovision of the Companies Act and rules framed there under are not applicable to theCompany.

6. We are informed that maintenance of cost records as prescribed by the CentralGovernment of India under subsection (1) of Section 148 of the Companies Act 2013 inrespect of the Company products are not applicable. Hence the provisions of Clause (vi)of paragraph 3 of the Order are not applicable to the Company.

7 (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including provident fund investor education and protectionfund employees’ state insurance income tax sales tax wealth tax service taxcustom duty excise duty cess and other material statutory dues to the extent applicablewith the appropriate authorities in India. However in case of delays in few instances thesame has been deposited along with interest due thereon.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of income tax sales tax as on 31stMarch2016 which have not been deposited on account of dispute are as under:

Name of the Statue Central Sales Tax Act and Local Sales Tax Act Nature of Dues Sales Tax Including Interest and Penalty as applicable Amount (Rs. In Lacs) Period to which the amount relates Forum where the dispute is pending
956900/- A.Y. 2007-08 Sales Tax Tribunal (Vat)
914477/- A.Y. 2007-08 Sales Tax Tribunal (Vat)
9794377/- A.Y. 2011-12 Sales Tax Tribunal (Vat)
715864/- A.Y. 2012-13 Sales Tax Tribunal (Vat)

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to financial institution/bank/debentureholders during the year under audit. Hence the provisions of Clause (viii) of paragraph 3of the Order are not applicable to the Company.

9. According to the information and explanation given to us the Company has not raisedmoney by way of initial public offer or further public offer (including debt instruments)or term loans during the year under audit. Hence the provisions of Clause (ix) ofparagraph 3 of the Order are not applicable to the Company.

10. According to information and explanation given to us and the records of the Companyexamined by us neither fraud on or by the Company has been noticed or reported during theyear.

11. According to information and explanation given to us and the records of the Companyexamined by us the Company has not paid or provided managerial remuneration in the booksof account. Hence the provisions of Clause (xi) of paragraph 3 of the Order are notapplicable to the Company.

12. According to the information and explanation given to us the Company is not aNidhi Company. Hence the provisions of Clause (xii) of paragraph 3 of the Order are notapplicable to the Company.

13. According to information and explanation given to us transaction with the relatedparties are in compliance with sections 177 and 188 of Companies Act 2013 and detailshave been disclosed in the Financial Statements. As required by the applicable accountingstandards.

14. According to information and explanation given to us and the records of the Companyexamined by us the Company has not made any prefential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Consequently clause (xiv) of paragraph 3 of the Order is not applicable to the Company.

15. According to information and explanation given to us and the records of the Companyexamined by us the Company has not entered into any non-cash transaction with directorsor persons connected with him. Consequently requirement of clause (xv) of paragraph 3 ofthe Order is not applicable to the Company.

16. According to information and explanation given to us and the records of the Companyexamined by us the Company is not undertaking any activity which requires registrationunder Section 45-IA of the Reserve Bank of India Act 1934. Consequently requirement ofclause (xvi) of paragraph 3 of the Order is not applicable to the Company.

For and on Behalf of
Jayesh M. Shah & Co.
Chartered Accountants
F.R.N. 104173W
Jayesh M. Shah
Place : Ahmedabad Proprietor
Date : 30th May 2016 Mem. No.: 30638

ANNEXURE-B TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to clause (f) of Paragraph 8 of the Auditor’s Report of even date to themembers of Santaram Spinners Limited on the financial statements for the year ended 31stMarch 2016.)

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

We have audited the internal financial controls over financial reporting of SantaramSpinners Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining InternalFinancial Controls based on internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued byThe Institute of Chartered Accountants of India(ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding 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 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 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgement including the assessment of the risks of materialmisstatement 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

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

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

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 2016 based oninternal 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 and on Behalf of
Jayesh M. Shah & Co.
Chartered Accountants
F.R.N. 104173W
Jayesh M. Shah
Place : Ahmedabad Proprietor
Date : 30th May 2016 Mem. No.: 30638