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Amarjothi Spinning Mills Ltd.

BSE: 521097 Sector: Industrials
NSE: AMARJOTHI ISIN Code: INE484D01012
BSE 00:00 | 06 Feb 158.90 0
(0.00%)
OPEN

155.55

HIGH

162.30

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150.25

NSE 05:30 | 01 Jan Amarjothi Spinning Mills Ltd
OPEN 155.55
PREVIOUS CLOSE 158.90
VOLUME 5416
52-Week high 209.95
52-Week low 144.00
P/E 8.75
Mkt Cap.(Rs cr) 107
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 155.55
CLOSE 158.90
VOLUME 5416
52-Week high 209.95
52-Week low 144.00
P/E 8.75
Mkt Cap.(Rs cr) 107
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 Amarjothi Spinning Mills Limited

Report on the Audit of the Standalone Financial Statements

Opinion

I have audited the accompanying Standalone financial statements of Amarjothi SpinningMills Limited (hereinafter referred to as "the Company") which comprise theStandalone balance sheet as at 31st March 2022 and the Standalone statement of profit andloss account Standalone statement of changes in equity and Standalone statement of cashflows for the year ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "The Standalone Financial Statements").

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 in the manner so required and give a true and fair view in conformitywith the Indian Accounting Standards Prescribed under section 133 of the Act read with theCompanies (Indian accounting Standards) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in India of the state of affairs of theCompany as at 31stMarch 2022 and its profit changes in equity and its cash flows forthe year ended on that date.

Basis for Opinion

I conducted my audit in accordance with the Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. My responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of my report. I am independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to my audit of the Standalone financial statementsunder the provisions of the Companies Act 2013 and the Rules thereunder and I havefulfilled my other ethical responsibilities in accordance with these requirements and theCode of Ethics. I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave not identified any key audit matters to be communicated in our report.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

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 CorporateGovernance and Shareholder's information but does not include the Standalone financialstatements 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.

Responsibilities of Management 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 Standalonefinancial position Standalone financial performance Standalone changes in equity andStandalone cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Ind AS specified under section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting 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 the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Standalone financial statements the Board of Directors of the companyare responsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Management either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

The Board of Directors of the Company is responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

My objectives is to obtain reasonable assurance about whether the Standalone financialstatements as a whole are free from material misstatement whether due to fraud orerror and to issue an auditor's report that includes my opinion. Reasonable assurance isa high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone financial statements.

As part of an audit in accordance with SAs I exercise professional judgment andmaintain professional skepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the Standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for my opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 I am also responsible for expressing my opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If I conclude that a material uncertainty existsI am required to draw attention in my auditor's report to the related disclosures in theStandalone financial statements or if such disclosures are inadequate to modify myopinion. My conclusions are based on the audit evidence obtained up to the date of myauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the Standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

I communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that I identify during my audit.

I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on my independenceand where applicable related safeguards.

From the matters communicated with those charged with governance I determine thosematters that were of most significance in the audit of the Standalone financial statementsof the current period and are therefore the key audit matters. I describe these matters inmy auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances I determine that a matter should not becommunicated in my report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 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 theSection197oftheAct.

3. As required by Section 143(3) of the Act I report that:

(a) I have sought and obtained all the information and explanations which to the bestof my knowledge and belief were necessary for the purposes of my audit of the aforesaidStandalone financial statements.

(b) In my opinion proper books of account as required by law relating to preparationof the aforesaid Standalone financial statement have been kept by the Company so far as itappears from my examination of those books.

(c) The Standalone Balance Sheet the Standalone Statement of Profit and Loss theStandalone Statement of Changes in Equity and the Standalone Cash Flow Statement dealtwith by this Report are in agreement with the relevant books of account maintained for thepurpose of preparation of Standalone Financial Statements.

(d) In my opinion the aforesaid Standalone financial statements comply with the Ind ASspecified 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 of thecompany as on 31st March 2022 taken on record by the Board of Directors of the Companynone of the directors is disqualified as on 31st March 2022 from being appointed as adirector in terms of Section 164(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 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 as amended inmy opinion and to the best of my information and according to the explanations given tome:

i. The company has disclosed the impact of pending litigations as at March 31 2022 onits financial position in its standalone financial statements - Refer note 27.17 to thestandalone financial statements.

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. (i) The management has represented that to the best of it's knowledge and beliefother than as disclosed in the notes to the accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the company to or in any other person(s) or entity(ies) includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(ii) The management has represented that to the best of it's knowledge and beliefother than as disclosed in the notes to the accounts no funds have been received by thecompany from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and

(iii) Based on such audit procedures that I have considered reasonable and appropriatein the circumstances nothing has come to my notice that has caused me to believe that therepresentations under sub-clause (i) and (ii) contain any material mis-statement.

v The dividend declared or paid during the year by the company is in compliance withsection 123 of the Companies Act 2013.

P.S. SITARAM
Proprietor
Place: Coimbatore Membership No.023033
Date: 30th May 2022 UDIN: 22023033AJVRXN6599

ANNEXURE - A To the Independent Auditors Report of even date on the StandaloneFinancial Statements of Amarjothi Spinning Mills Limited

(Referred to in paragraph 1 under 'Report on other legal and regulatory requirements'section 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) (i) The company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(ii) The company has maintained proper records showing full particulars of intangibleassets.

(b) The property plant and equipment have been physically verified by the managementduring the year which in my opinion is reasonable having regard tothe size of theCompany and the nature of its assets. No material discrepancies were noticed on suchverification.

(c) The title deeds of all immovable properties (other than leasehold land) shown underthe property plant and equipment schedule are held in the name of the company.

(d) The company has not revalued its Property Plant and Equipment (including Right ofUse assets) or intangible assets or both during the year.

(e) No proceedings have been initiated or are pending against the company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder.

2) (a) The inventory has been physically verified by the management at reasonableintervals during the year. In my opinion the coverage and procedure of such verificationis appropriate and no discrepancies of 10% or more in the aggregate for each class ofinventory were noticed at the time of verification.

(b) The company has been sanctioned working capital limits in excess of five crorerupees in aggregate from banks or financial institutions on the basis of security ofcurrent assets and the quarterly returns or statements filed by the company with suchbanks or financial institutions are in agreement with the books of account of the Company.

3) The Company has not provided any guarantee or security or granted any loans oradvances in the nature of loans secured or unsecured to companies firms limitedliability partnership or any other parties during the year. The Company has madeinvestment in one wholly owned subsidiary company and invested more than 26% capital inone associate partnership firm which prima facie are not prejudicial to the interest ofthe Company.

4) In my opinion and according to information and explanation given to me the Companyhas not given any loans or provided any guarantee or security as specified under section185 and 186 of the Companies Act 2013. In respect of the investments made by the Companythe provisions of section 186 of the Companies Act 2013 have been complied with.

5) The company has not accepted any deposits to which the provision 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 (v) of CARO is notapplicable to the company.

6) I have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records undersubsection^) of section 148 of the Act and I am of the opinion that prima facie theprescribed accounts and records have been made and maintained. However I have not made adetailed examination of the Cost records with a view to determining whether they areaccurate or complete.

7) (a) Undisputed statutory dues including provident fund employees' state insuranceincome-tax goods and service tax customs duty cess etc. have been generally regularlydeposited by the company with the appropriate authorities in all cases during the year.

(b) There are no dues of income-tax goods and service tax customs duty or cess etc.which have not been deposited on account of any dispute except a sum of Rs.6441749/- hasnot been paid being Generation tax payable on electricity charges. The matter is underdispute and pending with the Honourable High court of Madras. No Provision has been madefor this in the books.

8) There are no transactions which were not recorded in the books of account and havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961).

9) (a) The company has not defaulted in repayment of loans or other borrowings takenfrom or in the payment of interest thereon to any lender.

(b) The company is not a declared willful defaulter by any bank or financialinstitution or other lender.

(c) The term loans were applied for the purpose for which the loans were obtained bythe company.

(d) No funds raised on short term basis have been utilised for long term purposes bythe company.

(e) The company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures.

(f) The company has not raised loans during the year on the pledge of securities heldin its subsidiaries joint ventures or associate companies.

10) (a) The Company has not raised any money by way of initial public offer or furtherpublic offer during the year.

(b) The company has not made any preferential allotment or private placement of sharesor fully or partly or optionally convertible debentures during the year.

11) (a) Based upon the audit procedures performed and according to the information andexplanations given to me no fraud by the company or no fraud on the company has beennoticed or reported during the year that causes the financial statements to be materiallymisstated.

(b) According to the information and explanations given to me No report undersubsection (12) of section 143 of the Companies Act has been filed by the auditors in FormADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with theCentral Government.

(c) According to the information and explanations given to me no whistle-blowercomplaints were received during the year by the company.

12) The company is not a Nidhi Company and hence clause 3(xii)of the order is notapplicable.

13) According to the information and explanations given to me and based on myexamination of the records of the company transactions with the related parties are incompliance with section 177 and 188 of the Act. Where applicable the details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14) (a) According to the information and explanations given to me and based on myexamination of the records of the company the company has an internal audit systemcommensurate with the size and nature of its business.

(b) The reports of the Internal Auditors of the company for the period under audit wereconsidered by me and no material adverse points are there in that reports.

15) According to the information and explanations given to me and based on myexamination of the records of the company the company has not entered into non-cashtransactions with directors or persons connected with them.

16) (a) & (b) According to the information and explanations given to me and basedon my examination of the records of the company the company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934 as the company is nota non-banking financial company. Accordingly Clause 3 (xvi)(a) and Clause 3 (xvi)(b) ofthe order is not applicable.

(c) &(d) According to the information and explanations given to me and based on myexamination of the records of the company the company is not a Core Investment Company(CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly Clause3 (xvi)(c) and Clause 3 (xvi)(d) of the order is not applicable.

17) According to the information and explanations given to me and based on myexamination of the records of the company the company has not incurred cash losses in thefinancial year and in the immediately preceding financial year.

18) According to the information and explanations given to me and based on myexamination of the records of the company there has been no resignation of the statutoryauditors during the year.

19) According to the information and explanations given to me and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the financial statements myknowledge of the Board of Directors and management plans I am of the opinion that nomaterial uncertainty exists as on the date of the audit report that company is capable ofmeeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. I however state that this isnot an assurance as to the future viability of the company. I further state that myreporting is based on the facts up to the date of the audit report and I neither give anyguarantee nor any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date will get discharged by the company as and when they fall due.

20) According to the information and explanations given to me and based on myexamination of the records of the company the company is contributing to the Primeministers national relief fund for the purpose of CSR compliance and hence there is norequirement of transfer of unspent amount to the fund specified in schedule VII to theCompanies Act.

P.S. SITARAM
Proprietor
Place: Coimbatore Membership No.023033
Date: 30th May 2022 UDIN: 22023033AJVRXN6599

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF AMARJOTHI SPINNING MILLS LIMITED.

(Referred to in paragraph 3 (f) under ‘Report on other regulatory requirements' ofmy report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection143 of the Companies Act 2013 ("the Act")

I have audited the internal financial controls over financial reporting of M/sAmarjothi Spinning Mills Limited ("the Company") as of 31stMarch 2022 inconjunction 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 managements 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.

Auditor's 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 Institute of Chartered Accountantsof India and deemed to be prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat I comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal 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 selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

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.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 myopinionthe Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 st March 2022 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.

P.S. SITARAM
Proprietor
Place: Coimbatore Membership No.023033
Date: 30th May 2022 UDIN: 22023033AJVRXN6599

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