To The Members of M/s. Subhash Silk Mills Limited
Report on the Standalone Financial Statements
We have audited the standalone financial statements of Subhash Silk Mills Limited("the Company") which comprise the balance sheet as at 31st March 2019 and thestatement of Profit and Loss statement of changes in equity and statement of cash flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the note no. 2(k) the company provides for gratuity on cash basisinstead of actuarial valuation the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2019 and profit/loss changes in equity and itscash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgment we havedetermined that there are no key audit matters to communicate in our report.
Management's Responsibility for the Standalone 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 financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error. In preparing thefinancial statements management is responsible for assessing the Company's ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso. Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure a statement on the mattersspecified in 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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 our 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 does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For Govind Prasad and Co
Firm Regn.No 114360W
M. No. 047948
Date: 20th May 2019
Subhash Silk Mills Ltd
(Annexure to Auditor's Report)
(I) IN RESPECT OF ITS FIXED ASSETS:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has physically verified certain assets during the period in accord witha programme of verification which in our opinion provides for physical verification ofthe fixed assets at reasonable intervals. According to the information and explanationsgiven to no material discrepancies were noticed on such verification. In our opinion fixedassets have been properly dealt with in the books of accounts.
(c) In our opinion and according to the information and explanations given to us in ouropinion and according to the information and explanations given to us the title deed ofthe immovable properties of the company are held in the name of the company.
(ii) In respect of its inventories in our opinion and according to the information andexplanations given to us the management at reasonable intervals has physically verifiedthe inventory and no material discrepancies were noticed on physical verifications.
(iii) In respect of loans secured or unsecured granted to companies firms or otherparties covered by clause (76) of section 2 of the companies Act 2013
(a) In our opinion the terms and conditions of grant of such loans are not prejudicialto the company's interest.
(b) The repayments of principal amount as well as interest are regular whicheverapplicable.
(c) There is no amount overdue which is more than Rs. 5 lakhs.
(iv) In respect of loans investments and guarantees in our opinion and according tothe information and explanations given to us provisions of Section 185 and 186 of theCompanies Act 2013 have been complied with.
(v) In our opinion and according to the information and explanation given to us thecompany has not accepted deposits from the public as per section 73 to 76 or any otherrelevant provisions of the Companies Act 2013.
(vi) According to information and explanation given to us the maintenance of costrecords has not been prescribed by the Central Government sub section (1) of section 148of the Companies Act 2013.
(vii) According to the information and explanation given to us in respect of statutoryand other dues:
(a) The Company has been regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales-tax Service Tax CustomDuty Excise Duty Value added Tax Goods and Service Tax and other statutory dues withthe appropriate authorities during the period.
(b) There are disputed dues of Sales Tax Income Tax Customs Duty Service Tax ExciseDuty Value Added Tax Goods and Service Tax and any other statutory dues with theappropriate authorities during the period as under: Income Tax A.Y. 2015-16 813900against which appeal is pending in front of commissioner
(viii) In our opinion and according to the information and explanations given to ussince the company has not taken any loan from financial institutions banks and debentureholders clause (viii) is not applicable.
(ix) In our opinion and according to the information and explanations given to us thecompany has not raised any money by way of public issue/follow-on offer and the companyhas not availed any term loan clause (ix) is not applicable.
(x) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company was noticed or reported during theperiod.
(xi) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid/provided in accordance with the requisite approvalsmandated by the provisions of section 197 read with schedule V to the Companies Act.
(xii) Since the company is not a Nidhi Company clause xii is not applicable.
(xiii) In our opinion and according to the information and explanations given to usall transactions with the related parties are in compliance with Section 188 and 177 ofCompanies Act 2013 and the relevant details have been disclosed in the financialstatement etc. as required by the accounting standards and Companies Act 2013.
(xiv) In our opinion and according to the information and explanations given to us thecompany has not made preferential allotment/private placement of shares or fully paid upshares during the year under review hence this clause is not applicable.
(xv) In our opinion and according to the information and explanations given to us thenon-cash transactions with directors or persons connected with them in our opinionprovisions of Section 192 have been complied with.
(xvi) Since the company is not a banking company clause xvi is not applicable.
For GOVIND PRASAD & CO.
Membership No. 047948
Firm Registration No. 114360W
Date: 20th May 2019