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Suryalakshmi Cotton Mills Ltd.

BSE: 521200 Sector: Industrials
NSE: SURYALAXMI ISIN Code: INE713B01026
BSE 00:00 | 18 Feb 27.90 -0.10
(-0.36%)
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30.00

HIGH

30.95

LOW

25.10

NSE 00:00 | 18 Feb 28.10 -0.15
(-0.53%)
OPEN

28.95

HIGH

29.75

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27.45

OPEN 30.00
PREVIOUS CLOSE 28.00
VOLUME 2584
52-Week high 82.75
52-Week low 25.10
P/E
Mkt Cap.(Rs cr) 47
Buy Price 26.20
Buy Qty 100.00
Sell Price 30.00
Sell Qty 100.00
OPEN 30.00
CLOSE 28.00
VOLUME 2584
52-Week high 82.75
52-Week low 25.10
P/E
Mkt Cap.(Rs cr) 47
Buy Price 26.20
Buy Qty 100.00
Sell Price 30.00
Sell Qty 100.00

Suryalakshmi Cotton Mills Ltd. (SURYALAXMI) - Auditors Report

Company auditors report

To the members of

Surya Lakshmi Cotton Mills Limited

Hyderabad

Report on Ind-AS Financial Statements:

We have audited the accompanying Ind AS financial statements of Surya Lakshmi CottonMills Limited which comprise the Balance sheet as at 31st March 2018 the Statement ofProfit and Loss (including other comprehensive income) the Cash Flows and the statementof changes in equity for the year then ended and a summary of significant accountingpolicies and other explanatory information (herein after referred to as "Ind ASfinancial statements") .

Management's Responsibility for the Ind AS Financial Statements:

TheCompany'sBoardofDirectorsisresponsibleforthematters stated in Section 134(5) of theCompanies Act 2013 with respect to the preparation of these Ind AS financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the Indian Accounting Standards(Ind AS) prescribed under section 133 of CompaniesAct 2013 read with relevant rules issued there under and other accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the company and for preventing and detecting the 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 Ind AS financial statements that give a true and fair viewand 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. We have taken into account the provisions of the Companies Act 2013 theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Companies Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Companies Act 2013.Those standards 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 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 a 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 Companies Act 2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the financialposition of the Company as at 31st March 2018 of total comprehensive income (comprisingprofit and other comprehensive income) its cash flows and changes in equity for the yearended on that date.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order2016("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 A" a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.

2) As required by Section 143(3) of the Companies 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 purpose 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 Statement andchanges in equity dealt with by this Report are in agreement with the books of account;

d) in our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards (Ind AS) prescribed under Section 133 of the Companies Act read withrelevant rules issued there under and other accounting principles generally accepted inIndia;

e) on the basis of 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 terms of Section164(2) of the Companies Act; f) with respect to the adequacy of internal financialcontrols with reference to financial statements of the company and the operatingeffectiveness of such controls refer to our separate 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 has no pending litigations that would impact its financial position.However the Company has disclosed all pending litigations as contingent liabilities– Refer Note 33.1(a) to the Ind AS financial statements;

ii) the Company has no long term contracts and did not have derivative contracts;

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

for K.S. Rao & Co
Chartered Accountants
Firm Registration No. 003109S
P. Govardhana Reddy
Place: Hyderabad Partner
Date: 19th May 2018 (ICAI Memb. No.029193)

Annexure 'A' to the Independent Auditors' Report

The Annexure referred to in Paragraph 1 under the heading "Report on other Legaland Regulatory Requirements" of our report of even date to the members of SuryaLakshmi Cotton Mills Limited 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 its fixed assets;

b. the Fixed Assets are physically verified by the management according to a phasedprogram designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. Pursuant to the program a portion of the fixed assets has been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification;

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 property areheld in the name of the company.

(ii) the inventory has been physically verified by the management at reasonableintervals during the year under report and the discrepancies noticed during such physicalverification of inventories as compared to book records have been properly dealt with inthe books of account;

(iii) the company has not granted any loans to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Therefore the provisions of clause 3(iii)(a) 3(iii)(b) &3(iii)(c) of the said Order are not applicable to the company;

(iv) in our opinion and according to the information and explanations given to us thecompany has not granted any loans guarantees and security in accordance with theprovisions of section 185 of the Companies Act 2013. The company has complied with theprovisions of Section 186 of the Companies Act 2013 in respect of investments made by thecompany;

(v) the Company has not accepted any deposits from the public. Hence the provisions ofSections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under do not apply to this Company

(vi) we have broadly reviewed the books of account and records maintained by thecompany pursuant to the Rules made by the Central Government for the maintenance of CostRecords under section 148(1) of the Companies Act 2013 and we are of the opinion thatprima facie the prescribed accounts and records have been made and maintained.

(vii) (a) according to the information and explanations given to us and on the basis ofour examination of the records of the company in our opinion the company is regular indepositing with the appropriate authorities the undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Goods and Service TaxService Tax duty of Customs duty of Excise Value added tax Cess and other materialstatutory dues applicable to it; and according to the information and explanations givento us no undisputed amounts payable in respect of Provident Fund Income Tax Sales TaxGoods and Service Tax Service Tax duty of customs duty of Excise value added tax cessand other material statutory dues were in arrears as at 31st March 2018 for a period ofmore than six months from the date they became payable; b. According to the records of theCompany and the information and explanations given to us the dues of Sales tax Incometax Custom Duty Wealth Tax Service Tax Excise Duty Cess which have not beendeposited on account of dispute are as follows:

Nature of the Statute Nature of Dues Amount (J in Lakhs) Period to which the amount relates (Financial year) Forum where dispute is pending
Foreign Trade (Development TPS# 3307.33 2004-05 Hon'ble High Court of
& Regulations) Act 1992 Judicature at Hyderabad
Central Excise Tari3 Act 1985 Cenvat Excise 32.89 2004-05 Hon'ble High Court of
duty Judicature at Bombay Bench
at Nagpur
Maharashtra Gram Panchayat Gram Panchayat 23.87 2017-18 Divisional Commissioner
Act Tax Maharashtra State Nagpur
Customs Act1962 Customs Duty# 559.37 2004-05 CESTAT Mumbai
Custom Duty 61.49 2009 Hon'ble High Court of
Judicature of A.P. Hyderabad

# net of pre-deposit paid in getting the stay/appeal admitted.

viii) according to the records of the company examined by us and the information andexplanations given to us there were no defaults in repayment of loans or borrowings tobanks during the year under report;

ix) in our opinion and according to the information and explanations given to us theterm loans taken by the Company have been applied for the purpose for which they wereraised. The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year;

x) during the course of our examination of the books and records of the companycarried out in accordance with the Generally Accepted Auditing Practices in India andaccording to the information and explanations given to us we have neither come across anyinstances of material fraud by the company or any fraud on the company by its Officers oremployees noticed or reported during the year nor we have been informed any such casesby the management;

xi) according to the information and explanations given to us and based on ourexamination of the records of the company the company has paid/provided for themanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V of the Companies Act 2013;

xii) the company is not a chit fund or a nidhi/mutual benefit fund/society and hencethe requirement of clause 3(xii) of the Order is not applicable to the company during theyear under report; xiii) according to the information and explanations given to us andbased on our examination of the records of the company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards;

xiv) according to the information and explanations given 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 ourexaminations of the records of the company the company has not entered into non-cashtransactions with directors or persons connected with them. Therefore the provision ofclause 3(xv) of the 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 K.S. Rao & Co
Chartered Accountants
Firm Registration No. 003109S
P. Govardhana Reddy
Place: Hyderabad Partner
Date: 19th May 2018 (ICAI Memb. No.029193)

Annexure 'B' to the Independent 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 with reference to financial statementsof Surya Lakshmi Cotton 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 with reference to financialstatements

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal financial control with reference to financialstatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls withreference to financial statements issued by the Institute of Chartered Accountants ofIndia (‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and effcient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements 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 systemwith reference to financial statements

Meaning of Internal Financial Controls with reference to financial statements

A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls with reference to financial statements and such internal financialcontrols with reference to financial statements were operating effectively as at 31stMarch 2018 based on the internal control with reference to financial statements criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls with reference to financialstatements issued by the Institute of Chartered Accountants of India.

for K.S. Rao & Co

Chartered Accountants Firm Registration No. 003109S

P. Govardhana Reddy
Place: Hyderabad Partner
Date: 19th May 2018 (ICAI Memb. No.029193)