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Sri Malini Spinning Mills Ltd.

BSE: 521119 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Sri Malini Spinning Mills Ltd
NSE 05:30 | 01 Jan Sri Malini Spinning Mills Ltd

Sri Malini Spinning Mills Ltd. (SRIMALINI) - Auditors Report

Company auditors report

To the Members of Sri Malini Spinning Mills Limited

Report on the Financial Statements

We have audited the accompanying standalone financial statementsof Sri Malini SpinningMills Limited which comprise theBalance Sheetas at 31stMarch 2017 theStatement of Profit and Loss the CashFlow Statement for the year then ended and asummary of significantaccounting policies and other explanatory information.

Management s Responsibility forthe standalone 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 thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprincipals generally accepted in India including the Accounting Standards specified underSection 133 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 defecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on thesefinancial statementsbased 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 aboutwhetherthe financial statementsare free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures inthe financial statements. The procedures selected depend on the auditors judgment including the assessment of the risks of material misstatement ofthe financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company s preparation ofthe financialstatementsthat give true and fair view in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness ofaccountingpolicies used and the reasonablenessof theaccounting estimates made by Company's Directors as well as evaluating the overallpresentation 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to usthe aforesaid standalone financial statementsgive the information required bythe Act in the manner so required and give a true and fair view in conformity withtheaccountingprinciples generally accepted in India; (a) in the case of theBalance Sheetof the state of affairs ofthe Companyas at March 31 2017; (b) in the case of theStatement of Profit and Loss of the Loss for the year ended on that date and (c) in thecase ofthe CashFlow Statement ofthe cashflows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor s Report) Order 2017 (the Order) as amendedissued by the Central Government of Indiain terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure A a statement on the matters specified inthe paragraphs 3 and 4 ofthe Order to the extent applicable.

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 bytheCompanyso far as it appears from our examination of those books.

(c) TheBalance Sheet the Statement of Profit and Loss andCashFlow Statement dealtwith by this Report 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 31stMarch2017 taken on record by the Board of Directors none of the directors is disqualified ason 31stMarch 2017 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure B ; and

(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 does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There were no amounts which required to be transferred towards the investorprotection fund by the company.

L. Narayanan
Place : Salem Chartered Accountant.
Date : 29.05.2017 Membership No. 202175

Annexure A to the Auditor s report

The annexure referred to in our independent Auditor's report to the members of thecompany on the standalone financial statements for the year ending 31st March 2017. Wereport that;

1. Fixed Assets -

The company does not own any fixed assets.

2. Inventories -

The Company did not carry any inventories during the year under report and hence thePhysical verification of the same does not arise.

3. Loans and advances -

The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Actduring the year under report.

4. Loans Investments Guarantees and Other Securities -

The company has not granted any loans made any Investments given guarantee or othersecurity contravening the provisions of section 185 or section 186 of the Act.

5. Public deposits -

The company has not accepted any deposit from public during the year under report.

6. Cost Records -

The company has not done any manufacturing activity during the year under report andtherefore the maintenance of records for this year does not arise.

7. Statutory dues

The company is regular in depositing the undisputed statutory dues includingincome-tax sales-tax service tax and other statutory dues with the appropriateauthorities.

8. Borrowings from Financial lnstitutions - The Company does not have any loans orborrowings from any financial institutions banks government or debenture holders duringthe year. Accordingly paragraph 3(Viii) of the order is not applicable.

9. IPO and Further public offer - The Company did not raise any money by way of initialpublic offer or further public offer (including debt instruments) and term loans duringthe year. Accordingly paragraph 3 (ix) of the Order is not applicable.

10. Frauds - No such instances have been noticed on or by the company during the courseof our audit.

11. Managerial Remuneration - According to the information and explanations give to usand based on our examination of the records of the Company the Company has paid/providedfor managerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

12. Provisions Applicable to Nidhi Companies - In our opinion and according to theinformation and explanations given to us the Company is not a nidhi company. Accordinglyparagraph 3 (xii) of the Order is not applicable.

13. Related Party transactions - According to the information and explanations given tous and based on our examination of the records of the Company there are no transactionswith the related parties during the year under report.

14. Preferential allotment of shares - According to the information and explanationsgive to us and based on our examination of the records of the Company the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.

15. Non Cash Transactions with Directors

According to the information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable

16. Registration with RBl.

The Company is not required to be registered under section 45-lA of the Reserve Bank oflndia Act 1934.

17. Specified Bank Note

The Company did not deal in with the Specified Bank Note during the year under reportand hence the details required to be furnished are NIL.

L. Narayanan
Place : Salem Chartered Accountant.
Date : 29.05.2017 Membership No. 202175

Annexure - B to the Auditors Report

Report on the lnternal 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 of Sri MaliniSpinning Mills Limited ( the Company ) as of 31 March 2017 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.

Management s Responsibility for lnternal 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 lnternal Financial Controls over Financial Reportingissued by the lnstitute of Chartered Accountants of lndia ( lCAl ). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

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 on Audit of lnternal Financial Controls over Financial Reporting(the Guidance Note ) and the Standards on Auditing issued by lCAl and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of lnternal FinancialControls and both issued by the lnstitute of Chartered Accountants of lndia. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

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 judgment 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 lnternal 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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany s assets that could have a material effect on the financial statements.

lnherent Limitations of lnternal 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

ln 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 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit oflnternal Financial Controls Over Financial Reporting issued by the lnstitute of CharteredAccountants of lndia.

L. Narayanan
Place : Salem Chartered Accountant.
Date : 29.05.2017 Membership No. 202175