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Super Spinning Mills Ltd.

BSE: 521180 Sector: Industrials
NSE: SUPERSPIN ISIN Code: INE662A01027
BSE 00:00 | 19 Feb 6.20 0.43
(7.45%)
OPEN

6.20

HIGH

6.20

LOW

6.20

NSE 00:00 | 19 Feb 6.25 0.45
(7.76%)
OPEN

6.25

HIGH

6.25

LOW

5.85

OPEN 6.20
PREVIOUS CLOSE 5.77
VOLUME 110
52-Week high 15.94
52-Week low 4.92
P/E
Mkt Cap.(Rs cr) 34
Buy Price 5.75
Buy Qty 500.00
Sell Price 6.20
Sell Qty 1500.00
OPEN 6.20
CLOSE 5.77
VOLUME 110
52-Week high 15.94
52-Week low 4.92
P/E
Mkt Cap.(Rs cr) 34
Buy Price 5.75
Buy Qty 500.00
Sell Price 6.20
Sell Qty 1500.00

Super Spinning Mills Ltd. (SUPERSPIN) - Auditors Report

Company auditors report

To the members of SUPER SPINNING MILLS LIMITED

Report on the Ind AS financial statements

We have audited the accompanying Ind AS financial statements of SUPER SPINNING MILLSLIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss including Other Comprehensive Income theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including Other Comprehensive Income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with the Rules specified in the Companies (Indian AccountingStandards) Rules 2017 as amended from time to time. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; 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 Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. In conducting our audit we have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards and pronouncement require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures 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 a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide basis for our audit opinion on the Ind AS financial statements.

Opinion

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 31st March 2018 its losses Other Comprehensive Income its cash flowsand the changes in equity for the year ended on that date.

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 Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with the Rules specified in theCompanies (Indian Accounting Standards) Rules 2017 as amended from time to time;

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 isdisqualified as on 31st March 2018 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting; 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 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 Ind AS financial statements included in Note No. 40 forming part of the Ind ASfinancial 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
Registration No. 013367S
Timmayya Hegde
Coimbatore Partner
May 19 2018 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 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 SUPERSPINNING MILLS LIMITED ("the Company") as of 31st March 2018 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended 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 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 Ind AS 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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASfinancial 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st 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.

For M/s Sethia Prabhad Hegde & Co
Chartered Accountants
Registration No. 013367S
Timmayya Hegde
Coimbatore Partner
May 19 2018 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 SUPER SPINNING MILLSLIMITED for the year ended 31st March 2018)

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 sales-tax excise duty wealth-taxservice tax customs duty excise duty value added tax cess and other material statutorydues have been regularly deposited during the year by the company with appropriateauthorities. There are no undisputed statutory dues as referred to above as at 31stMarch 2018 outstanding for a period of more than six months from the date they becomepayable.

(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 (Rs. in Lakhs) Period to which the amount relates Forum Where Dispute is Pending
Income Tax Act 1961 Income Tax Disallowance of replacement of machinery 523.74 1993-1999 CIT(Appeals) Coimbatore
2000-2004 CIT(Appeals) Coimbatore
2004-2005 ITAT Chennai
2005-2009 CIT(Appeals) Coimbatore
2011-12 CIT(Appeals) Coimbatore
APGST Act 1957 Sales Tax Disallowance of Stock Transfer to branch & Tax due on other pending declaration forms 162.96 2010-11 STAT Visakhapatnam
APGST Act 1957 Sales Tax Disallowance of Stock Transfer to branch & Tax due on other pending declaration forms 432.00 2011-12 STAT Visakhapatnam
TNGST Act 1959 Sales Tax Levy of Penalty for Issue of C Forms 83.93 1998-99 Madras High Court Chennai
TNGST Act 1959 Sales Tax Rate Difference 149.42 2004-2008 Madras High Court Chennai
TNGST Act 1959 Sales Tax CST Rate Difference 0.31 2010-11 Appellate Deputy Commissioner of Commercial Taxes Coimbatore
Central Excise Act 1944 Excise Duty Capital goods moved without payment of duty 49.61 2007-08 CESTAT Chennei

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 Ind AS financial statements as required by theapplicable Indian 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
Registration No. 013367S
Timmayya Hegde
Coimbatore Partner
May 19 2018 Membership No. 226267