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Amit Spinning Industries Ltd.

BSE: 521076 Sector: Industrials
NSE: ASIL ISIN Code: INE988A01026
BSE 00:00 | 04 Mar Amit Spinning Industries Ltd
NSE 05:30 | 01 Jan Amit Spinning Industries Ltd
OPEN 1.04
PREVIOUS CLOSE 1.04
VOLUME 3
52-Week high 1.04
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.04
CLOSE 1.04
VOLUME 3
52-Week high 1.04
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Amit Spinning Industries Ltd. (ASIL) - Auditors Report

Company auditors report

To the Members of Amit Spinning Industries Limited Report on the Audit of Ind ASFinancial Statement

We have audited the accompanying Ind AS Financial Statements of AMIT SPINNINGINDUSTIRES LIMITED("The Company") which comprisethe Balance sheet as at March31 2019 the Statement of Profit and Loss including the statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and notes to the Ind AS financial statements including a summary of significantaccounting policies and other explanatory information.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph below the aforesaid Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2019 its loss and its cash flows for the year ended on that date

Basis for Qualified Opinion

1. Depreciation has been computed as per the rates and in the manner prescribed underthe Companies Act 2013. However in terms of applicable IND-AS the company need toreassess the useful life of the assets on the basis of technical evaluation or pastexperience of similar assets for arriving at the amount of depreciation to be charged fromyear to year.

2. Impairment loss if any needs to be accounted for by the company by forecasting itscash flow to analyze whether the cost of the asset is recoverable or not.

3. The company has substantial deposits which are interest free. As per applicableIND-AS the company needs to analyze whether the deposits need to be fair valued usingappropriate discounting rate on the basis of maturity period and type of deposits.

4. The company has incurred cash losses for the year 2018-19 to the extent of 429.11Lakhs (Previous Year Rs.3392.43 Lakhs). The company's Resolution Plan having been dulyapproved by NCLT vide order dated 01.08.2018 these Ind AS financial statements areprepared on going concern basis giving effect to the Resolution Plan so approved exceptfor reduction in share capital.

5. Due to non-availability of sanction from SEBI the effect of reduction in the sharecapital is still to be given in the accounts. On giving effect to this the share capitalof the company will get reduced by Rs.1852.63 Lakhs. Accordingly the liabilities writtenback and the assets written off as a result of approved resolution plan by NCLT standscredited to Insolvency and Bankruptcy Reserve totaling to Rs.1249168004/-

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the StandaloneInd AS Financial Statements for the financialyear ended March 31 2019. These matters were addressed in the context of our audit of theStandaloneInd AS Financial Statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the Standalone Ind ASFinancial Statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the Standalone Ind ASFinancial Statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying Standalone Ind AS FinancialStatements.

Key Audit Matters How our audit addressed the key audit matter
Insolvency Resolution Plan of the Company was approved by NCLT vide its order dated 31.07.2018 requiring consequential effects to be given in the accounts of the company having substantial impact on its financials Our audit procedures included and were not limited to the following:
? Obtained and read the final NCLT order as well the Insolvency Resolution Plan as approved by NCLT.
? Verification of entries passed as per the decision of the NCLT with regard to various assets and liabilities
? Transfer of effect to Insolvency and Bankruptcy Reserve.
Exceptional Items of Expenses in connection with recommissioning of company's production facilities Our audit procedures included and were not limited to the following:
? Obtained the details of various revenue and capital expenditure incurred in connection with the recommissioning of the company's production facilities and its verification with related records.
? Verification of bifurcation of such expenses into Revenue Expenditure and Capital Expenditure.
? Classification of Revenue Expenditure as 'Exceptional Item of expenses' in view of its one time and non-recurring nature.

INFORMATION OTHER THAN THE IND ASFINANCIAL STATEMENTS AND AUDITOR'S REPORT THEREON

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe Ind AS Financial Statements and our auditors' report thereon.

Our opinion on the Ind AS Financial Statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS Financial Statements our responsibility isto read the other information and in doing so consider whether such other information ismaterially inconsistent with the Ind AS financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information;weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Ind AS 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 Ind AS Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind As) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and forpreventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS Financial Statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS Financial Statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE IND AS FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the lnd AS FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our 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 from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of theselndAS Financial Statements. As partof an audit in accordance with SAs we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

? Identify and assess the risks of material misstatement of the Ind AS FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

? Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

? Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor'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 lnd AS FinancialStatements including the disclosures and whether the Ind AS Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We 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 we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind ASFinancial Statements forthe financial year ended March 312019 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters Specified in paragraphs 3and 4 of the Order.

2. As required by section 143(3) of the Act we further report that:

a) we have sought and except for the matters described in the Basis for QualifiedOpinion paragraph obtained allthe information and explanations which to the best of ourknowledge and belief were necessary for the purposeof our audit;

b) Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph above in our opinion proper books of account as required by law havebeen kept by the Company so far as appears from our examination of those books;

c) the Balance Sheet Statement of Profit and Loss Statement of Changes in Equity andCash Flow Statement dealt with by this Report are in agreement with the books of account;

d) Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph in our opinion the aforesaid Ind AS financial statements comply withthe applicable Accounting Standards specified under Section

133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;

e) On the basis of written representations received from the directors as on March 312019 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164(2) of theAct;

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";

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report asunder with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules2014:

(i) The Company has disclosed the impact of pending litigations on its financialposition in itsInd AS financial statements - Refer Note P11 to the Ind AS financialstatements;

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

(iii) The company is not liable for contribution to the Investor Education andProtection Fund.

SANJAY VHANBATTE AND COMPANY
Chartered Accountants
FRN NO.112996W
Place: Kolhapur CA. S. M. VHANBATTE
Date: June 18 2019 PROPREITOR