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Super Spinning Mills Ltd.

BSE: 521180 Sector: Industrials
NSE: SUPERSPIN ISIN Code: INE662A01027
BSE 00:00 | 24 Jun 8.65 -0.40
(-4.42%)
OPEN

8.70

HIGH

9.05

LOW

8.60

NSE 00:00 | 24 Jun 8.60 -0.45
(-4.97%)
OPEN

9.20

HIGH

9.20

LOW

8.60

OPEN 8.70
PREVIOUS CLOSE 9.05
VOLUME 53907
52-Week high 9.98
52-Week low 3.25
P/E
Mkt Cap.(Rs cr) 48
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.70
CLOSE 9.05
VOLUME 53907
52-Week high 9.98
52-Week low 3.25
P/E
Mkt Cap.(Rs cr) 48
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Super Spinning Mills Ltd. (SUPERSPIN) - Auditors Report

Company auditors report

Independent Auditors' Report on the Indian Accounting Standards (Ind AS) FinancialStatements To the members of Super Spinning Mills Limited Report on the Financialstatements Opinion

We have audited the accompanying Financial statements of M/s Super Spinning MillsLimited (‘the Company') which comprise the Balance Sheet as at 31st March 2020the Statement of Profit and Loss including the Statement of Other Comprehensive Incomethe Cash Flow Statement and the Statement of Changes in Equity for the year then ended andnotes to the financial statements including a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as ‘Financialstatements').

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial statements give the information required by theCompanies Act 2013 as amended (‘the Act') in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2020 its losses including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate except for the matter highlighted in the "Emphasis of Matter" paragraphforming part of this report.

Basis for opinion

We conducted our audit of the Financial statements in accordance with the Standards onAuditing (SAs) as specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the ‘Auditors' responsibilities for theaudit of the Financial statements' section of our report. We are independent of theCompany in accordance with the ‘Code of Ethics' issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Financial statements.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Financial statements for the financial year ended 31stMarch 2020. These matters were addressed in the context of our audit of the Financialstatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters.

Emphasis of Matters

Without qualifying our report we draw attention to: i) Note no. 52 to the financialstatements the extent of COVID 19 Pandemic`s impact on company's financial performancedepends on future developments which are highly uncertain and as such we are unable toquantify the financial impact.

Our opinion is not modified in respect of the above matter.

Information other than the financial statements and auditors' report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Chairman's Letter ManagementDiscussion and Analysis Corporate Governance and Directors' Report but does not includethe Financial statements and our auditors' report thereon.

Our opinion on the Financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the Financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the Financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of management 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 Financial statements that give a true and fair view of the financial positionfinancial performance including Other Comprehensive Income cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) prescribed under Section 133 ofthe Act read with the Rules specified in the Companies (Indian Accounting Standards)Rules 2015 as amended from time to time. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate 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 statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the Financial statements Management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless Managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibility 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 auditors' 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.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the Financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

- Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by Management.

- Conclude on the appropriateness of Management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company's abilityto continue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditors' report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up-to the date of our auditors'report. However future events or conditions may cause the Company to cease to continue asa going concern.

- Evaluate the overall presentation structure and content of the Financial statementsincluding the disclosures and whether the Financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on our independenceand where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Financial statements for thefinancial year ended 31st March 2020 and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. 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 the Rules specified in theCompanies (Indian Accounting Standards) Rules 2015 as amended from time to time;

(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 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 A" forming part of the Independent Auditors`Report. Our report expresses a Disclaimer of opinion on the adequacy and operatingeffectiveness of the Company`s internal financial controls over financial reporting;

(g) In our opinion the managerial remuneration for the year ended 31st March 2020 hasbeen paid/provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act; and

(h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigation on its financial positionin its Financial statements included in Note No. 42 of the Financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

2. 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 Act we give in the "Annexure B" statement on the matters specified inparagraphs 3 and 4 of the order to the extent applicable.

For M/s Sethia Prabhad Hegde & Co
Chartered Accountants
Firm Registration No. 013367S
Timmayya Hegde
Bengaluru Partner
27th June 2020 Membership No. 226267

Annexure - A to the Independent Auditors' Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date) Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls over financial reporting of M/sSUPER SPINNING MILLS LIMITED ("the Company") as of 31st March 2020 inconjunction with our audit of the 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 Guidance 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 and the timely preparation of reliable financialinformation as required 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 Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 was established andmaintained and if such controls 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 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.

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.

Disclaimer of Opinion

The Company was not able to provide us with sufficient appropriate audit evidence onthe system of internal financial control over financial reporting based on criteriaconsidering the essential components of internal control as stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India. Due to the aforesaid reason we are unable to and do notprovide any opinion as to whether the Company had adequate internal financial control overfinancial reporting as at 31st March 2020 and whether such internal financial controlswere operating effectively.

For M/s Sethia Prabhad Hegde & Co
Chartered Accountants
Firm Registration No. 013367S
Timmayya Hegde
Bengaluru Partner
27th June 2020 Membership No. 226267

ANNEXURE `B` TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date to the members of M/s SUPER SPINNINGMILLS LIMITED for the year ended 31st March 2020) We report that:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of the immovable properties areheld in the name of the company.

ii) (a) In our opinion and according to the information and explanations given to usthe management has conducted the physical verification of inventories at reasonableintervals during the year under review.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and nature of its business.

(c) According to the information and explanations given to us we are of the opinionthat the Company is maintaining proper records of inventories and no materialdiscrepancies were noticed on their physical verification.

iii) (a) The Company had not granted any loans secured or unsecured to any companiesfirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013 during the year. Hence comments on the provisions of clause (iii) (a)to (c) of the said Order do not arise.

iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans guarantees and investments made.

v) In our opinion and according to the information and explanations given to us duringthe year the Company has not accepted any deposit within the meaning of Section 73 to 76of the Companies Act 2013 and rules framed there under.

vi) We have broadly reviewed the books of account maintained by the company pursuantto the Rules made by the Central Government for the maintenance of cost records underSection 148 (1) of the Companies Act 2013 read with Companies (Cost Records and Audit)Rules 2014 as amended and are of the opinion that prima-facie the specified accounts andrecords have been made and maintained. We have not however made a detailed examinationof the records with a view to determining whether they are accurate or complete.

vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company amounts deducted/accrued in the books ofaccounts in respect of undisputed statutory dues including provident fund employees'state insurance income-tax goods and service tax customs duty cess and other materialstatutory dues have been regularly deposited during the year by the company withappropriate authorities. There are no undisputed statutory dues as referred to above as at31st March 2020 outstanding for a period of more than six months from the date theybecome payable.

(b) According to the information and explanations given to us the disputed statutorydues that have not been deposited on account of matters pending before the appropriateauthority are as under:

Name of Statute Nature of Dues Issues in the Appeal Unpaid Amount Period to which the amount relates Forum Where Dispute is Pending
(In lakhs)
Income Tax Act 1961 Income Tax Disallowance on account of replacement of machinery 523.74 1993 –94 1994-95 1998-99 2005-06 2006-07 2007-08 2008-09 CIT(Appeals) Coimbatore
2000- 01 ITAT Chennai
APGST Act 1957 Sales Tax Disallowance of Stock Transfer to branch & Tax due on other pending declaration forms 162.96 2010-2011 STAT Visakhapatnam
APGST Act 1957 Sales Tax Disallowance of Stock Transfer to branch & Tax due on other pending declaration forms 432.00 2011-2012 STAT Visakhapatnam
Central Excise Act1944 Export Rebate claim Appealed against the rejection of refund of export rebate claim which was received earlier. 25.41 2006-2007 Commissioner of Central Excise and Customs (Appeals) Guntur
Central Excise Act1944 Export Rebate claim Appealed against the rejection of refund of export rebate claim which was received earlier. 39.77 2006-2007 Commissioner of Central Excise and Customs (Appeals) Guntur

viii) The company has not defaulted in repayment of loans and borrowing to financialinstitution bank government or dues to debenture holders.

ix) The company has not raised any money by way of initial public offer or furtherpublic offer (including debt instrument) and term loans during the year. Accordinglyparagraph 3(ix) of the order is not applicable.

x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Financial statements as required by the applicableIndian accounting standards (Ind AS).

xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For M/s Sethia Prabhad Hegde & Co
Chartered Accountants
Firm Registration No. 013367S
Timmayya Hegde
Bengaluru Partner
27th June 2020 Membership No. 226267