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Shiva Texyarn Ltd.

BSE: 511108 Sector: Industrials
NSE: SHIVTEX ISIN Code: INE705C01012
BSE LIVE 15:41 | 02 Nov Stock Is Not Traded.
NSE 15:58 | 02 Nov Stock Is Not Traded.
OPEN 420.00
PREVIOUS CLOSE 409.85
VOLUME 8886
52-Week high 438.80
52-Week low 220.00
P/E 58.76
Mkt Cap.(Rs cr) 871
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 420.00
CLOSE 409.85
VOLUME 8886
52-Week high 438.80
52-Week low 220.00
P/E 58.76
Mkt Cap.(Rs cr) 871
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shiva Texyarn Ltd. (SHIVTEX) - Auditors Report

Company auditors report

To

The Members of Shiva Texyarn Limited Coimbatore

1. Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of SHIVA TEXYARNLIMITED ("The Company") which comprise of the Balance Sheet as at 31st March2016 the Statement of profit and Loss the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

2. Management's Responsibility for the Standalone 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 the preparation ofthese standalone 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 u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for the safeguarding the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate 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 ofthe accounting records relevant to the preparation and presentation of financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

3. Auditors' Responsibility

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. We conducted our audit inaccordance with the Standards on Auditing specified u/s 143(10) of the Act. Thosestandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial 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 material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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.

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.

4. Opinion

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 31st March 2016 and its profit and its cash flows for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements

1. 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 the'Annexure - A' a statement on the matters specified in paragraphs 3 and 4 of the Order tothe extent applicable.

2. As required by section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss andCash Flow Statement dealt 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 specified u/s 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. e) On the basis of the written representations received from theDirectors as on March 31 2016 taken on record by the Board of Directors none of theDirectors is disqualified as on March 31 2016 from being appointed as a Director interms of Section 164 (2) of the Act. f) With respect to the adequacy of the internalfinancial controls over financial reporting of the company and the operating effectivenessof such controls refer to our separate report in 'Annexure - B' g) With respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanation given to us: i. The Company has disclosed theimpact of pending litigations on its financial position in its financial statements. ii.The company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts. However the company has not entered into any derivative contracts.iii. The company has no amounts required to be transferred to Investor Education andProtection Fund.

For VKS AIYER & Co
Chartered Accountants
ICAI Firm Regn. No. 000066S
R UMAMAHESWARI
Place : Coimbatore Partner
Date : 25th May 2016 Membership No. 221962

Annexure - A referred to in Paragraph 5(1) of our report of even date

The Annexure referred to in our Independent Auditors' Report to the Members of theCompany on the Financial Statements for the year ended 31st March 2016 We report that:

1. In respect of fixed assets :

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.b) As explained to us the fixed assets have been physically verified by the managementduring the year in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification. c) The title deeds of all the immovable propertiesof the Company shown under the Fixed Assets schedule are held in the name of Company

2. In respect of Inventories:

As explained to us inventories have been physically verified by the management atreasonable intervals during the year. In our opinion the frequency of such verificationis reasonable and no discrepancies were noticed at the time of verification.

3. In respect of Loans and Advances granted:

The Company has not granted loans secured or unsecured to Companies Firms LLP's orother parties covered in the register maintained U/s. 189 of the Act.

4. In respect of Loans Investments Guarantees & Security:

The Company has not granted any Loan nor provided any Guarantee / Security and hencecompliance with the provisions of Section 185 and 186 of the Act in respect of the samedoes not arise. However during the year the Company has made investment in its whollyowned subsidiary and has complied with the provisions 186 of the Act with respect toInvestment.

5. In respect of Deposits accepted:

The company has accepted loans not being deposits from its Directors. These loans arenot covered by the provisions of Section 73 to 76 or any other relevant provisions of theCompanies Act 2013 read with the rules made there under. Hence the comment on complianceof provisions or rules or other directives does not arise.

6. In respect of Cost Records:

We have broadly reviewed the books of account maintained by the company pursuant to theRules made by the Central Government for the maintenance of cost records U/s. 148 of theAct and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have however not made a detailed examination of the costrecords with a view to determine whether they are accurate or complete.

7. In respect of Statutory dues:

a) According to the records of the Company undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Wealth Tax ServiceTax Duty of Customs Duty of Excise Value Added Tax Cess and other Statutory dues havegenerally been regularly deposited with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect of theaforesaid dues were outstanding as at the end of the year for a period of more than sixmonths from the date of becoming payable.

b) There are no dues of Sales Tax Service Tax Customs Duty Excise Duty and VAT whichhave not been deposited on account of any dispute.

8. Default in Repayment of Loans:

Based on our audit procedures and according to the information and explanations givento us we are of the opinion that the company has not defaulted in repayment of dues tofinancial institutions banks or debenture holders.

9. In respect of Application of Funds:

The Company has not raised any moneys by way of Initial Public Offer / Further PublicOffer during the Year. In our opinion the moneys raised by way of Term Loans during theyear were applied for the purposes for which those are raised.

10. Frauds:

In our opinion and according to the information and explanations given to us no fraudby the Company and no fraud on the Company by its officers / employees has been noticed orreported during the year.

11. In respect of Managerial Remuneration:

The Managerial Remuneration has been paid / provided in accordance with the requisiteapprovals mandated by S. 197 r/w. Schedule V to the Act.

12. In respect of Nidhi Companies:

The Company is not a Nidhi Co. and therefore clause 3(12) of the Order is notapplicable to the Company.

13. In respect of Related party transactions :

In our opinion all the Related Party Transactions entered into by the Company duringthe year are in compliance with the provisions of Section 177 & 188 of the Act and thedetails thereof have been disclosed in the Financial Statements as required by theAccounting standards.

14. In respect of preferential allotment / private placement :

The Company has not made any preferential allotment / private placement of sharesduring the year and therefore clause 3(14) of the Order is not applicable to the Company.

15. In respect of non-cash transactions with directors :

The Company has not entered into any non-cash transactions with directors / personsconnected with him as stipulated u/s. 192 of the Act. Clause 3(15) of the Order istherefore not applicable to the Company.

16. In respect of registration with RBI :

In our opinion the Company is not required to be registered u/s 45-IA of the ReserveBank of India Act 1934.

For VKS AIYER & Co
Chartered Accountants
ICAI Firm Regn. No. 000066S
R UMAMAHESWARI
Place : Coimbatore Partner
Date : 25th May 2016 Membership No. 221962

'Annexure - B' to the Independent Auditors’ Report Of Even Date On The StandaloneFinancial Statements Of Shiva Texyarn Limited

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 ShivaTexyarn 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 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.

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 u/s 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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.

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

A 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. A 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 authorizations of management and directors of the company; and

3. 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

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 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 VKS AIYER & Co
Chartered Accountants
ICAI Firm Regn. No. 000066S
R UMAMAHESWARI
Place : Coimbatore Partner
Date : 25th May 2016 Membership No. 221962