TO THE MEMBERS OF PARMESHWARI SILK MILLS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of PARMESHWARI SILK MILLS LIMITED("the compa-ny")which comprise the Balance Sheet as at 31 March 2018 theStatement of Profit and Loss the Cash Flow Statement fortheyearthenendedand significantsummaryof accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes the maintenance of adequate accounting records in accordance with the provisionof the Act for safeguarding of the assets of the Company and for preventing and detectingthe frauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
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 undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. 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. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of 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.
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;
a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2018. b) In the case of the Statement of Profit and Loss of the profit for the yearended on that date; and c) In the case of the Cash Flow Statement of the cash flows forthe year ended on that date
Report on other Legal and Regulatory Requirements
As required by section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books (and proper returns adequate for the purposes of our audit havebeen received from the branches not visited by us) c) The Balance Sheet the Statement ofProfit and Loss and Cash Flow Statement dealt with by this Report are in agreement withthe books of accounts. d) In our opinion the aforesaid financial statements comply withthe Accounting of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. e) Onthe basis of written representations received from the directors as on 31 March 2018taken on record by the Board of Directors none of the directors is disqualified as on 31March 2018 from being appointed as a director in terms of Section 164(2) of the Act. h)With respect to the other matters included in the Auditor's Report and to our best of ourinformation and according to the explanations given to us: i. As Stated by the Companythere is no pending litigations. ii. There is no Long Term Contracts including derivativecontracts. iii. There were no amounts which required to be transferred to the InvestorEducation and Protection Fund by the Company.
Kumar & Gupta
(Partner) M. No. 546517
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of PARMESHWARI SILK MILLSLIMITED the Company') for the year Ended on 31st March 2018. We report that:
|S.No. ||Particulars ||Auditors Remark |
|(i) ||(a) whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets; ||Yes |
| ||b) whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; ||Yes |
| ||(c) whether the title deeds of immovable properties are held in the name of the company. If not provide the details thereof; ||Yes |
|(ii) ||verification whether of inventory has been con physical - ducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so whether they have been properly dealt with in the books of account; ||Yes |
|(iii) ||whether the company has granted any loans secured or unsecured to companies firms Limited Liability Partner - ships or other parties covered in the register maintained under section 189 of the Companies Act 2013. If so ||No |
| ||(a) whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest; ||- |
| ||(b) whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; ||- |
| ||(c) if the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the prin- cipal and interest; ||- |
|(iv) ||in respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Compa- nies Act 2013 have been complied with. If not provide the details thereof. ||Yes |
|(v) ||in case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the pro- visions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereun- der where applicable have been complied with? If not the nature of such contraventions be stated; If an order has been passed by Company Law Board or National Compa- ny Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? ||No |
|(vi) ||Whether maintenance of cost records has been specified by the Central Government under sub-section (1) of sec- tion 148 of the Companies Act 2013 and whether such ac- counts and records have been so made and maintained. ||No |
|(vii) ||(a) whether the company is regular in depositing undis- puted statutory dues including provident fund employees' state insurance income-tax sales-tax service tax duty of customs duty of excise value added tax cess and any other statutory dues to the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated; ||Yes |
| ||(b) where dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pend- ing shall be mentioned. (A mere representation to the con- cerned Department shall not be treated as a dispute). ||N.A |
|(viii) ||whether the company has defaulted in repayment of loans or borrowing to a financial institution bank Government or dues to debenture holders? If yes the period and the amount of default to be reported (in case of defaults to banks financial institutions and Government lender wise details to be provided). ||No |
|(ix) ||Whether moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays or default and subsequent rectification if any as may be applicable be reported; ||Yes |
|(x) ||whether any fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year; If yes the nature and the amount involved is to be indicated; ||No |
|(xi) ||Whether managerial remuneration has been paid or pro- vided in accordance with the requisite approvals mandat- ed by the provisions of section 197 read with Schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing refund of the same; ||Yes |
|(xii) ||whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability; ||N.A |
|(xiii) ||whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applica- ble accounting standards; ||Yes |
|(xiv) ||Whether the company has made any preferential allotment or private placement of shares or fully or partly convertible de- bentures during the year under review and if so as to wheth- er the requirement of section 42 of the Companies Act 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. If not provide the details in respect of the amount involved and na- ture of non-compliance; ||No |
|(xv) ||Whether the company has entered into any non-cash trans- actions with directors or persons connected with him and if so whether the provisions of section 192 of Companies Act 2013 have been complied with ||No |
|(xvi) ||Whether the company is required to be registered under sec- tion 45-IA of the Reserve Bank of India Act 1934 and if so whether the registration has been obtained. ||N.A |
Kumar & Gupta
Chartered Accountants FRN. 020247N
(Partner) M. No. 546517