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Amarjothi Spinning Mills Ltd.

BSE: 521097 Sector: Industrials
NSE: AMARJOTHI ISIN Code: INE484D01012
BSE 00:00 | 23 Sep 157.20 -0.40
(-0.25%)
OPEN

158.00

HIGH

161.70

LOW

155.00

NSE 05:30 | 01 Jan Amarjothi Spinning Mills Ltd
OPEN 158.00
PREVIOUS CLOSE 157.60
VOLUME 5475
52-Week high 223.00
52-Week low 45.45
P/E 6.48
Mkt Cap.(Rs cr) 106
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 158.00
CLOSE 157.60
VOLUME 5475
52-Week high 223.00
52-Week low 45.45
P/E 6.48
Mkt Cap.(Rs cr) 106
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Amarjothi Spinning Mills Ltd. (AMARJOTHI) - Auditors Report

Company auditors report

To The Members of M/s. Amarjothi Spinning Mills Limited Report on the Audit of theStandalone Financial Statements Opinion:

I have audited the accompanying standalone financial statements of AmarjothiSpinning Mills Limited. ("the company") which comprise the Balance sheetas at 31st March 2020 the statement of Profit and Loss statement of changes inequity the Cash Flow Statement for the year ended and notes to the final statementincluding a summary of significant accounting policies and other explanatory information.

In my opinion and to the best of my information and according to the explanations givento me the aforesaid standalone financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with

the Indian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother the accounting principles generally accepted in India of the state of affairs ofthe Company as at 31st March 2020 its profit changes in equityand its cash flows for the year ended on that date.

Basis for Opinion:

I conducted my Audit in accordance with the Standards on Auditing (SAs)specified U/S. 143(10) of the companies Act 2013 ("The Act"). Myresponsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of my report. I amindependent of the company in accordance with the code of ethics issued by the instituteof Chartered Accountants of India together with the ethical requirements that are therules thereunder and I have fulfilled our other ethical responsibilities in accordancewith these requirements and the code of Ethics. I believe that the audit evidence I haveobtained is sufficient and appropriate to provide a basis for my opinion.

Information Other than the Standalone Financial Statements and Auditor's ReportThereon:

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and my auditor's report thereon.

My opinion on the standalone financial statements does not cover the other informationand I do not express any form of assurance conclusion thereon.

In connection with my audit of the standalone financial statements my responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or my knowledgeobtained during the course of my audit or otherwise appears to be materially misstated.

If based on the work I have performed I conclude that there is a materialmisstatement of this other information I am required to report that fact. I have nothingto report in this regard.

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 Act with respect to the preparation of these standalone financial statementsthat give true and fair view of the financial position financial performance changes inequity and cash flows of the company in accordance with the accounting principlesgenerally accepted in India including the Ind AS specified u\s 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial control that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement whetherdue to fraud or error.

In preparing the standalone financial statements Management is responsible forassessing the company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Standalone Financial statements:

My objectives are to obtain reasonable assurance about whether the standalone financialstatements as s whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes my opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these standalone financial statements.

Report on other legal and regulatory requirements

1. As required by the companies [Auditors report] Order2016 ("the order")issued by the central government of India in terms of sub section (11) of Section 143 ofthe Companies Act2013 I give in the "Annexure-A" a statement on the mattersspecified in paragraphs 3 and 4 of the order to the extent applicable.

2. As required by section 197(16) of the Act as amended in my opinion and to the bestof any information and according to the explanations given to me the remuneration paid bythe company to its directors during the year is in accordance with the provisions of theSection 187 of the Act.

3. As required by sec.143 (3) of the act I report that:

a. I have sought and obtained all the information and explanation which to the best ofour knowledge and belief were necessary for the purpose of my Audit.

b. in my opinion proper books of accounts as required by law have been kept by thecompany so far as it appears from my 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 my opinion the aforesaid standalone financial statements comply with the Ind ASspecified 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 the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in termsof sec.164(2) of the Act.

f. with respect to the adequacy of the internal financial control over financialreporting of the company and the operating effectiveness of such controls refer to myseparate report in ‘Annexure-B'.

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 my opinionand to the best of my information and according to the explanations given to me;

1) The Company does not have any pending litigations which would impact its financialposition.

2) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

3) There has been no delay in transferring amounts required to be transferred to theInvestor Education and protection Fund by the Company.

Place: Coimbatore P.S.SITARAM
Date: 29.06.2020 Chartered Accountant.
Membership No: 023033

ANNEXURE – A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF AMARJOTHI SPINNING MILLS LIMITED.

(Referred to in paragraph (1) under ‘Report on other legal and regulatoryrequirements' of my report of even date)

In terms of the information and explanations sought by me and given by the company andthe books and records examined by me in the normal course of audit and to the best of myknowledge and belief I report the following:-

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

(b) The fixed assets have been physically verified by the management during the yearwhich in my opinion is reasonable having regard to the size of the company and the natureof its assets. No material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties of the company shown under theFixed Assets schedule are held in the name of the company.

2. The inventories have been physically verified by the management at reasonableintervals during the year. In my opinion the frequency of such verification is reasonableand no material discrepancies were noticed at the time of verification.

3. The Company has not granted loans secured or unsecured to Companies Firms LLPsor other parties covered in the register maintained under section 189 of the Act.

4. In respect of loans investments and guarantees the provisions of Sections 185 and186 of the Act have been complied with.

5. The Company has not accepted any deposits to which the provisions of Sections 73 to76 or any other relevant provisions of the Act and the rules framed there under and theDirections issued by the RBI are applicable. Hence paragraph 3 (5) of CARO is notapplicable to the company.

6. I have broadly reviewed the books of accounts maintained by the Company pursuant tothe Rules made by the Central Government for the maintenance of cost records under section148 of the Act and I am of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. I have not however made a detailed examination ofthe cost records with a view to determining whether they are accurate or complete.

7. (a) Undisputed statutory dues including PF or ESI Income Tax sales tax servicetax Excise duty customs duty VAT cess etc have been regularly deposited by the Companywith the appropriate authorities in all cases during the year.

(b) There are no dues of income tax sales tax customs duty excise duty service taxVAT or cess etc which have not been deposited on account of any dispute. A sum ofRs.5152506/- has not been paid being Generation tax payable on electricity charges.

The matter is under dispute and pending with the honourable high court of Madras. Noprovision has been made for this in the books.

8. The Company has not defaulted in repayment of loans taken from FinancialInstitution Banks Government or dues to Debenture holders.

9. The Company has not raised any money by way of Initial Public offer/Further Publicoffer during the year. In my opinion the moneys raised by way of Term Loans during theyear have been applied for the purposes for which those are raised.

Place: Coimbatore P.S.SITARAM
Date: 29.06.2020 Chartered Accountant.
Membership No: 023033.

ANNEXURE – B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF AMARJOTHI SPINNING MILLS LIMITED.

Report on the Internal Financial Controls under clause (i) of sub section 3 of Section143 of the Companies Act 2013 ("The Act").

I have audited the internal financial controls over financial reporting of AmarjothiSpinning Mills Limited ("the Company") as of 31st March 2020in conjunction with my audit of the standalone financial statements of the company for theyear ended on that date.

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:

My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Internal Financial Controls Over Financial Reporting ("the GuidanceNote") and the Standards on Auditing issued by the ICAI and deemed to be prescribedunder section 143(10) of the Companies' Act 2013 to the extent applicable to an audit ofinternal financial controls both issued by the Institute of Chartered Accountants ofIndia.

Those standards and the Guidance Note require that I comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.

My audit involves performing procedures to obtain evidence about the adequacy of theinternal financial controls system over financial reporting and their operatingeffectiveness. My audit of internal financial controls over financial reporting includedobtaining an understanding of internal controls over financial reporting assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my 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 authorisations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised 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. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

OPINION:-

In my 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 2020 based on"the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

Place: Coimbatore P.S.SITARAM
Date: 29.06.2020 Chartered Accountant.
Membership No: 023033

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