Subhash Silk Mills Ltd.
|BSE: 530231||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE690D01014|
|BSE 00:00 | 18 Dec||Subhash Silk Mills Ltd|
|NSE 05:30 | 01 Jan||Subhash Silk Mills Ltd|
|BSE: 530231||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE690D01014|
|BSE 00:00 | 18 Dec||Subhash Silk Mills Ltd|
|NSE 05:30 | 01 Jan||Subhash Silk Mills Ltd|
To The Members of
SUBHASH SILK MILLS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of SUBHASH SILK MILLS LIMITED("the Company") which comprise the Balance Sheet as at March 31 2018the Statement of Profit and Loss and Cash Flow Statement 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 in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive Income change inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
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 there under. 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 the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2018 and its profit (Loss) total comprehensive Income the change inequity and its cash flows for the year ended on that date.
Emphasis of Matters
In our opinion and the best of our information and according to the explanation givento us there is no matter which may have an adverse effect on the functioning of thecompany.
Report on other Legal and Regulatory Requirements
Government of India in terms of sub section (11) of section 143 of the Act we give inthe Annexure A a statement on the matters specified in Para 3 and 4 of the Order. Asrequired by section 143(3) of the Act we report that: a) We have sought and obtained allthe information and explanations which to the best of our knowledge and belief werenecessary for the purposes of our audit. b) In our opinion proper books of account asrequired by law have been kept by the Company so far as it appears from our examination ofthose books. c) The Balance Sheet the Statement of Profit and Loss including otherComprehensive Income the statement in change of Equity and Cash Flow Statement dealtwith by this Report are in agreement with the books of account. d) In our opinion theaforesaid Ind AS financial statements comply with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. e) Onthe basis of written representations received from the Directors as on 31 March 2018taken on record by the Board of Directors none of the directors is disqualified as on 31March 2018 from being appointed as a Director in terms of Section 164(2) of the Act. f)With respect to the adequacy of the internal financial controls our financial reportingof the Company and the operating effectiveness of such controls refer to our separatereport in Annexure- B and g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditor) Rules2014 in our opinion and to our best of our information and according to the explanationsgiven to us: i. The Company did not have any pending litigations which would impact itsfinancial position. ii. The Company did not have any long term contracts includingderivatives contracts for which there were any material foreseeable losses. iii. There hasbeen no delay in transferring amounts required to be transferred to Investor Educationand Protection Fund by the Company.
ANNEXURE TO AUDITOR'S REPORT
i. In respect of its property Plant and equipments:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property Plant and equipments.
(b) The Company has physically verified property Plant and equipments during theperiod in accordance with a programme of verification which in our opinion provides forphysical verification of the fixed assets at reasonable intervals. According to theinformation and explanations given to no material discrepancies were noticed on suchverification. In our opinion property Plant and equipments have been properly dealt within the books of accounts.
(c) In our opinion and according to the information and explanations given to us thetitle deeds of the immovable properties of the company are held in the name of thecompany.
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 inventories and no material discrepancies were noticed on physical verifications.
iii. According to the information and explanations given to us the Company has notgranted loan to any party covered in register u/s. 2(76) hence clause iii (a) (b) and(c) are not applicable.
iv. In respect of loans investments and guarantees in our opinion and according to theinformation 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 theinformation and explanation given to us the company has not accepted deposits from thepublic as per section 73 to 76 or any other relevant provisions of the Companies Act2013.
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 explanations given to usin respect of statutory and other dues:
(a) The Company has been regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales-tax Wealth Tax ServiceTax Custom Duty Excise Duty Value added Tax cess and any other statutory dues with theappropriate authorities during the period.
(b) There are no disputed dues of Sales Tax Income Tax Customs Duty Wealth TaxService Tax Excise Duty Value Added Tax Cess and any other statutory dues with theappropriate authorities during the period. viii. In our opinion and according to theinformation and explanations given to us the Company has not defaulted in repayment ofdues to financial institutions banks or debenture holders.
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. Further withreference to money raised as term loans in our opinion were applied for the purpose forwhich the said loans are raised.
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 us alltransactions 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 any preferential allotment/private placement of shares or fully orpartly convertible debentures during the year under review.
xv. According to the information and explanations given to us the non- cashtransactions with directors or persons connected with them in our opinion provisions ofSection 192 have been complied with.
xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India
ANNEXURE B TO THE AUDITORS' REPORT
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 of SubhashSilk Mills Limited ("the Company") as of 31st March 2018 in conjunction withour audit of the standalone Ind As Financial Statements of the Company for the year endedon 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 Guidancce Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records an timely generation of reliable financialinformation as required under the Companies Act 2013.
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 Internal Financial Controls over Financial Reporting(the "Guidance Note") and the standard on Auditing issued by the Insititute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply 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 involved 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 control 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 (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 authorisations 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.
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. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion the Compnay 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 2018 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 ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.