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Hisar Spinning Mills Ltd.

BSE: 521068 Sector: Industrials
NSE: N.A. ISIN Code: INE689E01014
BSE 00:00 | 23 Aug 15.56 0.74
(4.99%)
OPEN

15.56

HIGH

15.56

LOW

15.56

NSE 05:30 | 01 Jan Hisar Spinning Mills Ltd
OPEN 15.56
PREVIOUS CLOSE 14.82
VOLUME 100
52-Week high 21.40
52-Week low 10.55
P/E 2.96
Mkt Cap.(Rs cr) 6
Buy Price 15.56
Buy Qty 900.00
Sell Price 14.70
Sell Qty 100.00
OPEN 15.56
CLOSE 14.82
VOLUME 100
52-Week high 21.40
52-Week low 10.55
P/E 2.96
Mkt Cap.(Rs cr) 6
Buy Price 15.56
Buy Qty 900.00
Sell Price 14.70
Sell Qty 100.00

Hisar Spinning Mills Ltd. (HISARSPGMILLS) - Auditors Report

Company auditors report

To The Members of Hisar Spinning Mills Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Hisar Spinning MillsLimited ("the Company") which compose the Balance Sheet as at 31st March2018 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then ended anda summary of the significant accounting policies and other explanatory information

Management's Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under Section 143(11) of the Act.

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 financial statements are free from material misstatement.

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 the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence obtained by us 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 31stMarch 2018. and its profit total comprehensive income the changes in equity and itscash 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")issued by the Central Government of India in terms of Section 143(11) of the Act and onthe basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in"Annexure A" a statement on the matters specified in the paragraphs 3 and 4 ofthe Order.

2. 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 including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flows dealt with by thisReport are in agreement with the books ot account.

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards prescribed 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 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate 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 our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich 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.

for ROMESH K. AGGARWAL & ASSOCIATES
Chartered Accountants
(Firm's Registration No. 000711N)
(RUCHIR SINGLA)
Place: Chandigarh Partner
Date: 22.05.2018 Membership No. 519347

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report to the Members of Hisar Spinning Mills Limited of even date)

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

(b) The Company has a program for the physical verification of fixed assets at periodicintervals In our opinion the period of verification is reasonable having regard to thesize of the Company and the nature of its fixed assets. No material discrepancies werenoticed 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 areheld in the name of the Company.

(ii) The inventory has been physically verified during the year by the management atreasonable intervals. The discrepancies noticed on verification between the physicalstocks and the book records were not material.

(iii) The Company has not granted any loans secured or unsecured to companies firms.Limited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Thus paragraph 3(iii) (a) (b) and (c) of the Order are notapplicable.

(iv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not advanced any loans or madeany investments or given any guarantees or provided any security during the year. Thusparagraph 3(iv) of the Order is not applicable.

(v) The Company has not accepted deposits during the year and does not have anyunclaimed deposits as at 31st March 2018 and therefore the provisions of the paragraph3(v) of the Order are not applicable to the Company.

(vi) The Central Government has not specified the maintenance of cost records underSection 148(1) of the Act for any of the products of the Company.

(vii) (a) The Company has generally been regular in depositing undisputed statutorydues including provident fund employees' state insurance income-tax sales-tax servicetax goods and service tax duty of customs duty of excise value added tax cess andother material statutory dues as applicable to the Company with the appropriateauthorities though there has been slight delay in few cases. According to the informationand explanations given to us no undisputed amounts outstanding as payable in respect ofsuch statutory dues were in arrears as at 31st March. 2018 for a period of more than sixmonths from the date they became payable.

(b) There are no dues of income tax or service tax or goods and service tax or duty ofcustoms or duty of excise which have not been deposited on account of any dispute.According to the records of the Company the outstanding dues of sales tax or value addedtax on account of dispute are given below:

Nature of the Statute Nature of the Dues Amount (Rs.) (Gross) Amount Paid / adjusted under Protest (Rs.) Period to which the amount relates Forum where dispute is pending
Haryana Value Added Tax Act 2003 Value added tax 397773/- 397773/- Assessment Year 2012- 2013 Before the Joint Excise and Taxation Commissioner (Appeals) Haryana
Central Sales Tax Act 1956 Central sales tax 87675/- 87675/- Assessment Year 2013- 2014 Before the Joint Excise and Taxation Commissioner (Appeals). Haryana

(viii) The Company has not defaulted in repayment of loans or borrowing to a financialinstitution or bank The Company does not have any loans or borrowing from Governmentduring the year The Company also does not have any outstanding debentures during the year.

(ix) The Company has not raised any money during the year by way of initial publicoffer or further public offer (including debt instruments) and term loans. Accordinglyparagraph 3(ix) of the Order is not applicable.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the year.

(xi) In our opinion and according to the information and explanation given to us theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected to its directors. Accordingly paragraph3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

for ROMESH K. AGGARWAL & ASSOCIATES
Chartered Accountants
(Firm's Registration No. 000711N)
(RUCHIR SINGLA)
Place: Chandigarh Partner
Date : 22.05.2018 Membership No. 519347

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Hisar Spinning Mills Limited of evendate)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference to financial statementsof Hisar Spinning Mills Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls with reference to financialstatements

The Company's management is responsible for establishing and maintaining internalfinancial controls with reference to financial statements based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia CICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls with reference to financial statements that wereoperating 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 Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls with reference tofinancial statements. 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 with reference to financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

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 systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as at31st March 2018. based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India.

for ROMESH K. AGGARWAL 8 ASSOCIATES
Chartered Accountants
(Firm's Registration No. 000711N)
(RUCHIR SINGLA)
Place: Chandigarh Partner
Date: 22.05.2018 Membership No. 519347