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Tejassvi Aaharam Ltd.

BSE: 531628 Sector: Industrials
NSE: N.A. ISIN Code: INE173E01019
BSE 05:30 | 01 Jan Tejassvi Aaharam Ltd
NSE 05:30 | 01 Jan Tejassvi Aaharam Ltd

Tejassvi Aaharam Ltd. (TEJASSVIAAHARAM) - Auditors Report

Company auditors report

TO THE MEMBERS OF TEJASSVI AAHARAM LIMITED (Formerly Known as Sterling Spinners Ltd.)

Report on the Financial Statements

We have audited the accompanying financial statements of TEJASSVI AAHARAM LIMITED(formerly known as Sterling Spinners Ltd.) ("the Company") which comprise theBalance Sheet as at March 312017 the Statement of Profit and Loss the Cash FlowStatement for the year ended on that date and a summary of significant accountingpolicies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in sub-Section 5of Section 134 of the Companies Act 2013 ("the Act") with respect to thepreparation of these 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 ("the Rules"). This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe 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

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 thereunder.

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

An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 the accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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.

Opinion

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 of the state of affairs of the Company as at March31 2017 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by 'the Companies (Auditor's Report) Order 2016'('the Order') issuedby the Central Government of India in exercise of powers conferred by sub-section 11 ofSection 143 of the Act we enclose in "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by sub-section (3) of Section 143 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on March31 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms ofSub-Section 2 of Section 164 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 B". Our report expresses unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial control overfinancial reporting.

(g) With respect to the other matters to be included in the Independent Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

(i) The Company does not have pending litigations as at March 31 2017 which wouldimpact its financial position.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2017; and

(iv) The Company has provided requisite disclosures in its financial statements as toits holdings as well as dealings in Specified Bank Notes during the period 8th November2016 to 30th December 2016 and these are in accordance with the books of accountmaintained by the Company.

For D. Sampathkumar & Co.

Chartered Accountants

(Firm Registration Number : 003556S)

Sd-

M.K. Ravindran. (Partner)

Membership Number 020887

Place: Chennai.

Date : May 26 2017.

Annexure-A to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other legal and Regulatory Requirements'section of our report of even date to the financial statements of the Company for the yearended March 31 2017)

Report on Companies (Auditor's Report) Order 2016 ("the Order") of TEJASSVIAAHARAM LIMITED (formerly known as Sterling Spinners Ltd.) ("the Company")

i) In respect of its fixed assets:

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

b) As explained to us all the fixed assets have been physically verified by themanagement 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) According to the information and explanations given to us the title deeds ofimmovable properties as disclosed in Note 9 to the financial statements are held in thename of the Company

ii) In respect of its inventories:

a) The inventories have been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.

b) As per the information and explanation given to us no material discrepancies werenoticed on physical verification.

iii) In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Act. Accordingly paragaraph 3(iii) of the Order is not applicable to theCompany.

(iv) The Company has not granted any loans to the parties covered under section 185 ofthe Act but has provided guarantees to the parties covered under section 185 of the Act.

The Company has not made any investments during the year.

v) The Company has not accepted any deposits from the public. Accordingly paragraph 3(v) of the Order is not applicable to the Company.

vi) We have broadly reviewed the records maintained by the Company pursuant to therules prescribed by the Central Government for maintenance of Cost Records under sub-section 1 of Section 148 of the Act and are of opinion that prima facie the prescribedaccounts and records have been made and maintained. However we have not made a detailedexaminations of the record.

vii) In respect of Statutory dues:

a. According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including provident fund employees state insurance income taxsales tax service tax duty of customs duty of excise value added tax cess and othermaterial statutory dues as applicable with the appropriate authorities.

b. According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance income tax sales taxservice tax duty of customs duty of excise value added tax cess and other materialstatutory dues were in arrears as at 31 March 2017 for a period of more than six monthsfrom the date they became payable.

c. According to the information and explanations given to us there are no dues ofIncome tax Sales tax Wealth tax Service tax duty of Customs duty of Excise ValueAdded Tax and Cess which have not been deposited as on March 31 2017 on account ofdisputes.

(viii) The Company does not have any loans or borrowings from any financialinstitution banks government or debenture holders during the year. Accordinglyparagraph 3 (viii) of the Order is not applicable.

(ix) The Company has not raised monies by way of initial public offer or further publicoffer (including debit instruments). The term loans were used for the purpose for whichthose were raised.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reportedduring the course of our audit.

(xi) In our opinion and according to the information and explanations given to us theCompany has not paid / provided for managerial remuneration during the year. Accordinglyparagraph 3 (xi) of the Order is not applicable.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3 (xii) ofthe Order is not applicable.

(xiii) According to the information and explanations give to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting standards [AS] 18 Related Party Disclosure as specified under section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) According to the information and explanations give to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

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

For D. Sampathkumar & Co.

Chartered Accountants

(Firm Registration Number : 003556S)

Sd-

M.K. Ravindran. (Partner)

Membership Number 020887

Place: Chennai.

Date : May 26 2017.