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Parmeshwari Silk Mills Ltd.

BSE: 540467 Sector: Industrials
NSE: N.A. ISIN Code: INE808R01012
BSE 05:30 | 01 Jan Parmeshwari Silk Mills Ltd
NSE 05:30 | 01 Jan Parmeshwari Silk Mills Ltd

Parmeshwari Silk Mills Ltd. (PARMESHWARISILK) - Auditors Report

Company auditors report

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 company") which comprise the Balance Sheet as at 31 March 2020 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Managementfs 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 position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditorfs Responsibility

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 accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and 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 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 issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

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; a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2020. b) In the case of the Statement of Profitand Loss of the profit for the year ended on that date; and c) In the case of the CashFlow Statement of the cash flows for the 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 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 appears from our examination of those books (and proper returns adequatefor the purposes of our audit have been received from the branches not visited by us)

c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of accounts. d) In our opinion theaforesaid financial statements comply with the Accounting Standards specified underSection 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 31 March2020 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2020 from being appointed as a director in terms of Section 164(2) of theAct.

h) With respect to the other matters included in the Auditor's Report and to our bestof our information and according to the explanations given to us:

i. As Stated by the Company there is no pending litigations.

ii. There is no Long Term Contracts including derivative contracts.

iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company.

For Montek S and Associates
Chartered Accountants
FRN: 020247N
Montek Singh
Membership No 546517
Date: 16.07.2020
UDIN: 20546517AAAADF9800

Annexure to the Auditorsf Report

The Annexure referred to in our report to the members of PARMESHWARI SILK MILLSLIMITED the Company') for the year Ended on 31st March 2020. 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) whether physical verification of inventory has been conducted 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 Partnerships 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; N.A
(b) whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; N.A
(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 principal and interest; N.A
(iv) in respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies 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 provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder 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 Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? N.A
(vi) Whether maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and whether such accounts and records have been so made and maintained. Yes the company maintains Cost records
(vii) (a) whether the company is regular in depositing undisputed 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 There are no dues pending for more than six months

(b) where dues of income tax or sales tax or service tax or duty of customs or There isno such duty of excise or value added tax have not been deposited on account of amount.any dispute then the amounts involved and the forum where dispute is pending shall bementioned. (A mere representation to the concerned Department shall not be treated as adispute). (viii) whether the company has defaulted in repayment of loans or borrowing to aNo financial institution bank Government or dues to debenture holders? If yes theperiod and the amount of default to be reported (in case of defaults to banks financialinstitutions and Government lender wise details to be provided). (ix) Whether moneysraised by way of initial public offer or further public offer Yes (including debtinstruments) and term loans were applied for the purposes for which those are raised. Ifnot the details together with delays or default and subsequent rectification if any asmay be applicable be reported; (x) whether any fraud by the company or any fraud on theCompany by its officers No or employees has been noticed or reported during the year; Ifyes the nature and the amount involved is to be indicated; (xi) Whether managerialremuneration has been paid or provided in accordance Yes with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act? Ifnot state the amount involved and steps taken by the company for securing refund of thesame; (xii) whether the Nidhi Company has complied with the Net Owned Funds to N.ADeposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company ismaintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014to meet out the liability; (xiii) whether all transactions with the related parties are incompliance with sections Yes 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements etc. as required by theapplicable accounting standards; (xiv) Whether the company has made any preferentialallotment or private No placement of shares or fully or partly convertible debenturesduring the year under review and if so as to whether the requirement of section 42 of theCompanies Act 2013 have been complied with and the amount raised have been used for thepurposes for which the funds were raised. If not provide the details in respect of theamount involved and nature of non-compliance; (xv) Whether the company has entered intoany non-cash transactions with No directors or persons connected with him and if sowhether the provisions of section 192 of Companies Act 2013 have been complied with (xvi)Whether the company is required to be registered under section 45-IA of the N.A ReserveBank of India Act 1934 and if so whether the registration has been obtained.

For Montek S and Associates
Chartered Accountants
FRN: 020247N
Montek Singh
Membership No 546517
Date: 16.07.2020
UDIN: 20546517AAAADF9800

AUDITORfSCERTIFICATE

(In terms of Regulation 34(3) and Schedule V (E) of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015) TO THE MEMBERS OF PARMESHWARI SILK MILLSLIMITED

We have examined the compliance of conditions of Corporate Governance by ParmeshwariSilk Mills Limited for the year ended March 31 2020 stipulated in Regulation 34(3) ofthe SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 of the saidCompany with Stock Exchanges. The Compliance of condition of Corporate Governance is theresponsibility of the Management. Our examination was limited to the procedures andimplementation thereof adopted by the Company to ensure Compliance with the condition ofCorporate Governance. It is neither an audit nor an expression of an opinion on thefinancial statements of the Company. In our opinion and to the best of our information andaccording to the explanations given to us we certify that the Company has fully compliedwith all the mandatory conditions of Corporate Governance as stipulated in Schedule V ofthe SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

For Montek S and Associates
Chartered Accountants
FRN: 020247N
Montek Singh
Membership No 546517
Date: 16.07.2020
UDIN: 20546517AAAADF9800

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