You are here » Home » Companies » Company Overview » Pranavaditya Spinning Mills Ltd

Pranavaditya Spinning Mills Ltd.

BSE: 531172 Sector: Industrials
NSE: N.A. ISIN Code: INE569D01028
BSE 00:00 | 11 Oct 20.10 0
(0.00%)
OPEN

21.15

HIGH

21.15

LOW

20.10

NSE 05:30 | 01 Jan Pranavaditya Spinning Mills Ltd
OPEN 21.15
PREVIOUS CLOSE 20.10
VOLUME 6
52-Week high 21.15
52-Week low 11.74
P/E
Mkt Cap.(Rs cr) 39
Buy Price 22.20
Buy Qty 3.00
Sell Price 20.10
Sell Qty 1949.00
OPEN 21.15
CLOSE 20.10
VOLUME 6
52-Week high 21.15
52-Week low 11.74
P/E
Mkt Cap.(Rs cr) 39
Buy Price 22.20
Buy Qty 3.00
Sell Price 20.10
Sell Qty 1949.00

Pranavaditya Spinning Mills Ltd. (PRANAVSPINNING) - Auditors Report

Company auditors report

To The Members of Pranavaditya Spinning Mills Limited

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of Pranavaditya Spinning MillsLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including other comprehensive income) CashFlow Statement and the statement of changes in equity for the year then ended and asummary of 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance and cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards specified in the Companies (Indian AccountingStandards) Rules 2015 (as amended) under sec 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 statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's responsibility

Our responsibility is to express an opinion on these standalone Ind AS FinancialStatements based on our audit.

We have taken into account the provisions of the Act and the rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.

We conducted our audit of the standalone Ind AS Financial Statements in accordance withthe 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 the amounts andthe disclosures in the standalone Ind AS Financial Statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS Financial Statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS Financial Statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone 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 2018 and its Loss (including other comprehensiveincome) its cash flows and the changes in equity for the period ended on that date.

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 ofthe Companies Act 2013 we give in the Annexure 'A' a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

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) the Cash Flow Statement and statement of changes in equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of

Directors none of the directors is disqualified as on 31st March 2018 frombeing appointed as a director in terms of Section 164 (2) of the Act.

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) 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 standalone Ind AS Financial Statements- Refer Note Nos. 22 and 31.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any in respect of long-term contractsincluding derivative contracts.

iii. There were no amounts required to be transferred to the Investor Education andProtection Fund by the Company during the year.

For Suresh Kumar Mittal & Co. Chartered Accountants

Firm Reg. No.: 500063N

Ankur Bagla Partner

Membership Number: 521915

Mumbai April 30 2018

Annexure A referred to in Paragraph (I) under the heading of "Report on OtherLegal and Regulatory Requirements" of our report of even date to the members ofPranavaditya Spinning Mills Limited on the standalone Ind AS Financial Statements for theyear ended 31s* March 2018.

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

assets.

(b) The fixed assets have been physically verified by the management during the year asper the phased program designed to cover all the fixed assets over a period which in ouropinion is reasonable having regard to the size of the company and nature of its assets.Discrepancies noticed on such verification which are not material have been properlydealt with in the books of accounts.

(c) The title deeds of immovable properties are held in the name of the company.

(ii) As explained to us the inventories have been physically verified by themanagement during the year except stocks lying with third parties in respect of whomconfirmations have been obtained and the discrepancies noticed on physical verification ascompared to book record which are not material have been properly dealt with in thebooks of account. In our opinion the frequency of such verification is reasonable.

(iii) As explained to us the company has not granted any loans secured or unsecuredto companies firms limited liability partnerships or other parties covered in theregister maintained under section 189 of the Companies Act 2013 and as such clauses (iii)(a) (b) and (c) of the order are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us noloans investments guarantees and security covered under section 185 and 186 of theCompanies Act 2013 has been given by the company. Therefore the provisions of clause(iv) of the order are not applicable to the company.

(v) According to the information and explanation given to us the company has notaccepted any deposit from the public. Therefore the provisions of clause (v) of the orderare not applicable to the company.

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the order made by the Central Government for the maintenance of cost records undersection 148(1) of the Act and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However we are neither required tocarry out nor have carried out detailed examination of such cost accounting records with aview to determine whether they are accurate or complete.

(vii) According to the records of the company examined by us and information andexplanations given to us:

(a) The company is generally regular in depositing with the appropriate authoritiesundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andothers as applicable. There are no undisputed amounts payable in respect of aforesaid duesoutstanding as at 31st March 2018 for a period of more than six months fromthe date they became payable.

(b) There are no disputed dues of income tax or sales tax or service tax or duty ofcustoms or duty of excise or value added tax outstanding as at 31st March2018.

(viii) In our opinion and according to the information and explanations given to usthe company has no outstanding loans or borrowings from financial institutional bank orgovernment hence provisions of clause (viii) of the order are not applicable to thecompany.

(ix) In our opinion during the year no money has been raised by way of initial publicoffer or further public offer (including debt instruments) or term loans hence provisionsof clause (ix) of the order are not applicable to the company.

(x) According to the information and explanations given to us no fraud by the companyor on the company by its officers or employees has been noticed or reported during theyear.

(xi) In our opinion and according to the information and explanation given to usduring the year the company has not paid/ provided any managerial remuneration and henceprovisions of clause (xi) of the order are not applicable to the company.

(xii) The company is not a nidhi company and hence provisions of clause (xii) of theorder are not applicable to the company.

(xiii) According to the records examined by us and information and explanations givento us all transactions with the related parties are in compliance with Sections 188 and177 of the Act and necessary details as required by the accounting standards have beendisclosed in Note No. 32 of the standalone Ind AS Financial Statements.

(xiv) The Company has not made any preferential allotment / private placement of sharesor fully or partly convertible debentures during the year ended 31st March2018.

(xv) The company has not entered into any non cash transactions with directors orpersons connected with him.

(xvi) The Company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934

For Suresh Kumar Mittal & Co.

Chartered Accountants

Firm Reg. No.: 500063N

Ankur Bagla Partner

Membership Number: 521915

Mumbai April 30 2018

Annexure B referred to in Paragraph (M)(f) under the heading of "Report on OtherLegal and Regulatory Requirements" of our report of even date to the members ofPranavaditya Spinning Mills Limited on the standalone Ind AS Financial Statements for theyear ended 31st March 2018.

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 over financial reporting ofPranavaditya Spinning Mills Limited ("the Company") as of 31st March2018 in conjunction with our audit of the Standalone Ind AS Financial Statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI)". These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we

comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting 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 over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements 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 systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that:

a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

c) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2018based on "the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote issued by the ICAI".

For Suresh Kumar Mittal & Co. Chartered Accountants

Firm Reg. No.: 500063N

Ankur Bagla Partner

Membership Number: 521915

Mumbai April 30 2018