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Pasari Spinning Mills Ltd.

BSE: 521080 Sector: Industrials
NSE: N.A. ISIN Code: INE604F01010
BSE 00:00 | 09 Dec 5.61 0.26
(4.86%)
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NSE 05:30 | 01 Jan Pasari Spinning Mills Ltd
OPEN 5.61
PREVIOUS CLOSE 5.35
VOLUME 21612
52-Week high 13.72
52-Week low 3.68
P/E 23.38
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.61
CLOSE 5.35
VOLUME 21612
52-Week high 13.72
52-Week low 3.68
P/E 23.38
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Pasari Spinning Mills Ltd. (PASARISPINNING) - Auditors Report

Company auditors report

To

The Members of Pasari Spinning Mills Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of PasariSpinning Mills Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2022 and the Statement of Profit and Loss and Statement of Changes in Equityand Cash fows for the year then ended and notes to the financial statements including asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 (‘Act) in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 its profit and cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit in accordance with the standards on auditingspecified under section 143 (10) of the Companies Act 2013. Our responsibilities underthose Standards are further described in the auditor's responsibilities for the audit ofthe financial statements section of our report. We are independent of the Company inaccordance with the code of ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and thecode of ethics.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We don't have any key audit matters to be addressed.

Information Other than the Financial Statements and Auditors' ReportThereon

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theBoard's Report including Annexures to Board's Report Business Responsibility Report butdoes not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact Wehave nothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors are responsible for the matters statedin section 134 (5) of the Act with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theaccounting standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and 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 financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the Financial Statements Management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessManagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a 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 financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial 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 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 theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by Management.

• Conclude on the appropriateness of Managements use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor'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 thefnancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese 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

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 of the Companies Act 2013 we give in the Annexure "A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

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

a) We have sought and obtained all the information and explanationswhich to the best of 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 beenkept by the Company so far as it appears from our examination of those books;

c) The balance sheet the statement of profit and loss including othercomprehensive income statement of changes in equity and the cash flow statement dealtwith by this report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with theIndian accounting standards specified under section 133 of the Act read with rule 7 ofthe Companies (Accounts) Rules 2014;

e) On the basis of the written representations received from theDirectors as on March 31 2022 taken on record by the Board of Directors none of theDirectors is disqualifed as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting;

g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us;

a. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements in accordance with the generally acceptedaccounting practice.

- Also refer Note 21 (i) to the financial statements.

b. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and

c. There were no amounts which required to be transferred by theCompany to the Investor Education and Protection Fund

for Rao and Emmar
Chartered Accountants
Firm Registration No. 003084S
Adarsh N A
Partner
Membership No: 240166
Date: 10.05.2022
Place: Bengaluru

Annexure "A" to the Independent Auditor's Report

(Referred to in paragraph 1 under ‘Report on other legal andregulatory requirements' section of our report to the members of Pasari Spinning MillsLimited of even date)

1. In respect of the Company's fixed assets:

a. The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

b. Company does not have any intangible assets in its books ofaccounts.

c. The fixed assets of the Company were physically verified duringthe year by the Management in accordance with a regular programme of verification whichin our opinion provides tor physical verification of all the fixed assets at reasonableintervals. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification.

d. According to the information and explanations given to us and onthe basis of our examination of records of the Company The title deeds of all immovableproperties which are freehold are held in the name of the company as at the balance sheetdate.

e. According to the information and explanations given to us and onthe basis of our examination of records of the Company the company has not revalued itsProperty Plant & Equipment (including right of-use assets) and intangible assetsduring the year.

f. According to the information and explanations given to us and onthe basis of our examination of the records of the Company there are no proceedingsinitiated or pending against the company for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder.

2. a. The Company does not carry any inventory hence paragraph3(ii) of the order is not applicable.

b. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not beensanctioned working capital limits in excess of fve crore rupees in aggregate from banksor financial institutions on the basis of the security of current assets at any point oftime during the year. Accordingly clause 3(ii)(b) of the Order is not applicable to theCompany.

3. As per the information and explanation given to us the companyhas not made investments in has not provided any guarantee or security or has not grantedany loans or advances in the nature of loans secured or unsecured to companies firmsLimited Liability Partnerships or any other parties during the year.

4. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees and securities as applicable.

5. In our opinion and according to the information and explanationsgiven to us the company has not accepted any deposits and accordingly paragraph 3 (v) ofthe order is not applicable.

6. The Central Government of India has not prescribed themaintenance of cost records under sub-section (1) of section 148 of the Act for any of theactivities of the company and accordingly paragraph 3 (vi) of the order is not applicable.

7. In respect of statutory dues:

a. The Company does not have liability in respect of Service taxDuty of excise Sales tax and Value added tax during the year since effective 1 July 2017these statutory dues has been subsumed into Goods and Services Tax ("GST")According to the information and explanations given to us and on the basis of ourexamination of the records of the Company in our opinion amounts deducted / accrued inthe books of account in respect of undisputed statutory dues including GST Providentfund Employees' State Insurance Income-Tax Duty of Customs Cess and other statutorydues have been regularly deposited by the Company with the appropriate authorities;According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no undisputed amounts payable in respect ofGST Provident fund Employees' State Insurance Income-Tax Duty of Customs Cess andother statutory dues were in arrears as at 31 March 2022 for a period of more than sixmonths from the date they became payable.

b. According to the information and explanations given to us and onthe basis of our examination of the records of the Company there are no statutory duesrelating to GST Provident Fund Employees State Insurance Income-Tax Sales Tax ServiceTax Duty of Customs Value Added Tax or Cess or other statutory dues which have not beendeposited on account of any dispute.

8. According to the information and explanations given to us andon the basis of our examination of the records of the Company the Company has notsurrendered or disclosed any transactions previously unrecorded as income in the books ofaccount in the tax assessments under the Income Tax Act 1961 as income during the year.

9. a. According to the information and explanations given to us andon the basis of our examination of the records of the Company the Company has notdefaulted in the repayment of loans or borrowings or in the payment of interest thereon toany lender.

b. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not beendeclared a wilful defaulter by any bank or financial institution or government orgovernment authority.

c. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not obtainedany term loans during the year.

d. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the company has not raised anyfunds on short term basis.

e. According to the information and explanations given to us and onan overall examination of the standalone financial statements of the Company we reportthat the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries as defined in the Act. The Company does not holdany investment in any associate or joint venture (as defined in the Act) during the yearended 31 M arch 2022.

f. According to the information and explanations given to us andprocedures performed by us we report that the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries (as defined under the Act).

10. a. The Company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) or term loans and hencereporting under clause 3(x)(a) of the Order is not applicable.

b. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly clause 3(x)(b) of the Order is not applicable.

11. a. Based on examination of the books and records of the Companyand according to the information and explanations given to us considering the principlesof materiality outlined in the Standards on Auditing we report that no fraud by theCompany or on the Company has been noticed or reported during the course of the audit.

b. According to the information and explanations given to us noreport under sub-section (12) of Section 143 of the Act has been fled by the auditors inForm ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 withthe Central Government.

c. To the best of our knowledge and according to the informationand explanations given to us the company has not received any Whistler Blower complaints.

12. According to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause 3(xii) of the Order is not applicable.

13. In our opinion and according to the information andexplanations given to us the transactions with related parties are in compliance withSection 177 and 188 of the Act where applicable and the details of the related partytransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

14. According to the information & explanations provided to uscompany does not have internal audit system in place.

15. In our opinion and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withits directors or persons connected to its directors and hence provisions of Section 192of the Act are not applicable to the Company.

16. a. The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934. Accordingly clauses 3(xvi)(a) and 3(xvi)(b)of the Order are not applicable.

b. The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of theOrder is not applicable.

c. According to the information and explanations provided to usduring the course of audit the Group does not have any CICs.

17. The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

18. There has been no resignation of the statutory auditors duringthe year. Accordingly clause 3(xviii) of the Order is not applicable.

19. According to the information and explanations given to us andon the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thestandalone financial statements our knowledge of the Board of Directors and managementplans and based on our examination of the evidence supporting the assumptions nothing hascome to our attention which causes us to believe that any material uncertainty exists ason the date of the audit report that the Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

20. Section 135 of the companies' act 2013 is not applicable to thecompany. Accordingly paragraph 3 (xx) of the order is not applicable.

for Rao and Emmar
Chartered Accountants
Firm Registration No. 003084S
Adarsh N A
Partner
Membership No. 240166
Date: 10.05.2022

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 2 (f under ‘Report on other legal andregulatory requirements' section of our report to the Members of Pasari Spinning MillsLimited of even date)

Report on the Internal Financial Controls Over Financial Reportingunder clause (i) of sub - section 3 of section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Pasari Spinning Mills Limited ("the Company") as at March 31 2022in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible tor establishingand maintaining internal fnancial controls based on the internal control over fnancialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively far ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the standards on auditing prescribed under Sect on 143 (10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. Those standards and the guidance note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal fnancial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement in the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrol system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting 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 overfinancial reporting includes those policies and procedures that (i) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (ii) 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 (iii) 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.

Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper Management ofoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and according to the information and explanations givento us the Company has in all material respects an adequate internal financial controlsystem over fnancial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2022 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.

for Rao and Emmar
Chartered Accountants
Firm Registration No. 003084S
Adarsh N A
Partner
Membership No. 240166
Date: 10.05.2022
Place: Bengaluru

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