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Surat Textile Mills Ltd.

BSE: 530185 Sector: Industrials
NSE: N.A. ISIN Code: INE936A01025
BSE LIVE 15:29 | 21 Sep 4.00 0.01
(0.25%)
OPEN

4.18

HIGH

4.18

LOW

3.85

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 4.18
PREVIOUS CLOSE 3.99
VOLUME 40969
52-Week high 9.05
52-Week low 3.11
P/E 5.63
Mkt Cap.(Rs cr) 89
Buy Price 3.88
Buy Qty 4845.00
Sell Price 4.00
Sell Qty 9730.00
OPEN 4.18
CLOSE 3.99
VOLUME 40969
52-Week high 9.05
52-Week low 3.11
P/E 5.63
Mkt Cap.(Rs cr) 89
Buy Price 3.88
Buy Qty 4845.00
Sell Price 4.00
Sell Qty 9730.00

Surat Textile Mills Ltd. (SURATTEXTILE) - Auditors Report

Company auditors report

To the Members of Surat Textile Mills Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Surat TextileMills Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

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 standalone financial statements that give a 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 frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the standalone 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 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 thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of 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 standalone financial statements.

Opinion

8. 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 2017 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 sub-section (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 thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) on the basis of the written representations received from the directors as on 31stMarch 2017 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 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; 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 knowledge and belief and according to the information andexplanations given to us:-

i. the Company has in accordance with the generally accepted accounting principaldisclosed the impact if any of pending litigations as at 31st March 2017 on itsfinancial position in its standalone financial statements -Refer Note 32;

ii. the Company did not have any long-term contracts including derivatives contracts asat 31st March 2017 hence the question of commenting on any material foreseeable lossesthereon does not arise;

iii. no dividend has been declared in previous 7 financial years therefore there is nodividend amount due to be transferred to the Investor Education and Protection Fund by theCompany during the year ended 31st March 2017; and iv. the Company has provided requisitedisclosures in its standalone financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from 8th November 2016 to 30th December 2016.Based on audit procedures and relying on the management representation we report that thedisclosures are in accordance with books of account maintained by the Company and asproduced to us by the Management that refer Note 31 to the standalone financialstatements.

For NATVARLAL VEPARI & CO.
Chartered Accountants
FRN: 123626W
R. N. VEPARI
Partner
Surat 29th May 2017 Membership No.: 6728

Annexure A to the Independent Auditors' Report

Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of Surat Textile Mills Limited on the standalone financial statements as at andfor the year ended 31st March 2017 we report that:

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the Management at reasonable intervals.According to the information and explanations given to us no material discrepancies havebeen 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) As per the information and explanations given to us the inventories have beenphysically verified by the management at reasonable intervals during the year. In ouropinion the frequency of verification is reasonable. The discrepancies noticed onphysical verification of inventory as compared to book records were not material inrelation to the operations of the Company and the same have been appropriately dealt within the books of accounts.

(iii) The company has not granted any loans secured or unsecured to companies / firms/ Limited Liability Partnerships / Other parties covered in the register maintained undersection 189 of the Act. Therefore the provisions of clause 3(iii) (iii)(a) and (iii)(b)of the said Order are not applicable to the Company.

(iv) The Company has neither granted any loans nor provided any guarantees or securityto the party covered under section 185 of the Act nor made any investment covered undersection 186 of the Act.

(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) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act in respect of its products to which the said rules are madeapplicable and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have not however made a detailed examination of therecords with a view to determine whether they are accurate or complete.

(vii) a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales tax value added tax customs duty excise duty service tax cess andother material statutory dues as applicable with the appropriate authorities.

b) According to the information and explanations given to us and the records of theCompany examined by us there were no undisputed amounts payable in respect of providentfund employees' state insurance sales tax value added tax customs duty cess and othermaterial statutory dues in arrears as at 31st March 2017 for a period of more than sixmonths from the date they became payable.

The particulars of dues of Excise Duty / Service Tax as at 31st March 2017 which havenot been deposited on account of disputes are given below:

Name of Statute Nature of dues Amount (Rs. In Lacs) Period to which the amount relates Forum where the dispute is pending Amount deposited against the dispute (Rs. In Lacs)
Central Excise Act 1944 Excise duty /Service tax 40.22 2008-09 & 2010-11 Customs Excise and Service Tax Appellate Tribunal (Ahmedabad) 5.00

(viii) According to the records of the Company examined by us and the information andexplanation given by the management the Company has not defaulted in repayment of loansor borrowings to any financial institution or bank.

(ix) The Company has not raised any monies by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordingly theprovisions of clause 3 (ix) of the Order is not applicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

(xi) According to the information and explanations given by the management the Companyhas paid / provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Act.

(xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it the provisions of Clause 3(xii) of the Order are not applicable to theCompany.

(xiii) The Company has entered into transactions with related parties in compliancewith the provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the standalone financial statements as required underAccounting Standard (AS) 18 Related Party Disclosures specified under section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) The Company has not made any preferential allotment / private placement of sharesor fully or partly convertible debentures during the year under review in compliance withthe requirement of Section 42 of the Act. Accordingly the provisions of Clause 3(xiv) ofthe Order are not applicable to the Company.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with its directors or persons connectedwith him.

Accordingly the provisions of clause 3(xv) of the Order are not applicable to theCompany.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For NATVARLAL VEPARI & CO.
Chartered Accountants
FRN: 123626W
R. N. VEPARI
Partner
Surat 29th May 2017 Membership No.: 6728

Annexure B to the Independent Auditor's Report

Referred to in paragraph 10(f) of the Independent Auditors' Report of even date to themembers of Surat Textile Mills Limited on the standalone financial statements for the yearended 31st March 2017.

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of SuratTextile Mills Limited ("the Company") as of 31st March 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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 and 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 standalone financial statements for external purposes in accordancewith generally 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 standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the financialstatements.

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 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 NATVARLAL VEPARI & CO.
Chartered Accountants
FRN: 123626W
R. N. VEPARI
Partner
Surat 29th May 2017 Membership No.: 6728