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Tejassvi Aaharam Ltd.

BSE: 531628 Sector: Industrials
NSE: N.A. ISIN Code: INE173E01019
BSE 05:30 | 01 Jan Tejassvi Aaharam Ltd
NSE 05:30 | 01 Jan Tejassvi Aaharam Ltd

Tejassvi Aaharam Ltd. (TEJASSVIAAHARAM) - Auditors Report

Company auditors report

To the members of Tejassvi Aaharam Limited (Formerly Sterling Spinners Ltd)

Report on the Financial Statements

We have audited the accompanying Financial Statements of TejassviAaharam Limited (Formerly Sterling Spinners Ltd) ("the Company') which comprise theBalance Sheet as at March 31 2018 the Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow statement and the Statement ofChanges in Equity for the year then ended and a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as " FinancialStatements")

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters statedin subsection 5 of Section 134 of the Companies Act 2013 ("the Act") withrespect to the preparation of these Financial Statements that give a true and fair view ofthe financial position financial performance including other comprehensive income cashflows and the statement of changes in equity of the company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS)prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended.

This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding the assetsof the Company and for preventing and detecting the frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financialstatements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit of the financial statements in accordance withthe Standards on Auditing issued by the Institute of Chartered Accountants of India asspecified under sub-section 10 Section 143 of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

D. SAMPATHKUMAR & CO.

CHARTERED ACCOUNTANTS

New No.5 Old No.3 5 South Boag Road T. Nagar

CHENNAI - 600017 Phone No : 24341189

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the 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 Loss including Other Comprehensive Incomeits cash flows andthe statement of changes in equity for the for the year ended on that date.

Report on other Legal and Regulatory Requirements

1. As required by the Companies(Auditor's Report) Order 2016("the Order1) issued by the Central Government of India in exercise of powersconferred by sub-section 11 of Section 143 of the Act we enclose in "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by sub-section (3) of Section 143 of the Act we reportthat:

a) We have sought and obtained all the information and explanationswhich to the best of 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 beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including othercomprehensive income the Cash Flow Statement and the Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule the Companies(Indian Accounting Standards) Rules 2015 as amended.

e) On the basis of the written representations received from thedirectors as on March 312018 and taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2018 from being appointed as a director in termsof sub - section 2 of Section 164 of the Act.

f) With respect to adequacy of internal financial controls overfinancial reporting of the company and the operating effectiveness of such controls referto our separate report in "Annexure B" to this report. Our report expressesunmodified opinion on the adequacy and operating effectiveness of the Company's internalfinancial control over financial reporting.

g) With respect to the other matters to be included in the IndependentAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us :

i. the Company does not have pending litigations as at March 31 2018which would impact its financial position;

ii. the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and

ii. there were no amounts which were required to be transferred to theInvestor Education andProtection Fund by the Company.

For D Sampathkumar& Co.

Chartered Accountants

(Firm Registration No. 0003556S)

M K Ravindran (Partner) Membership No.020887 Place : Chennai Date : May30 2018

Annexure A to Independent Auditors' Report

(Referred to in paragraph 1 under "Report on Other Legal andRegulatory Requirements' section of our report of even date to the financial statements ofthe company for the year ended March 31 2018)

Report on Companies (Auditor's Report) Order 2016 ("theOrder") of Tejassvi Aaharam Limited (Formerly Sterling Spinners Ltd) ("theCompany")

i) In respect of its fixed assets:

a) The company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets on the basis of availableinformation.

b) As explained to us all the fixed assets have been physicallyverified by the management in a phased periodical manner which in our opinion isreasonable having regard to the size of the company and nature of its assets. No materialdiscrepancies were noticed on such physical verification.

c) According to the information and explanations given to us by themanagement of the Company the title deeds of immovable properties as disclosed in Note 4to the financial statements are held in the name of the Company.

ii) In respect of its inventories:

a) In our opinion the inventories have been physically verified duringthe year by the management at reasonable intervals.

b) As per the information and explanations given to us no materialdiscrepancies were noticed on such physical verification.

iii) In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicableto the Company.

iv) The Company has not granted any loans to the parties covered undersection 185 of the Act but has provided guarantees to the parties covered under section185 of the Act. The Company has not made any investments during the year.

v) According to the information and explanations given to us theCompany has not accepted any deposit from the public. Accordingly paragraph 3(v) of theOrder is not applicable to the Company.

vi) We have broadly reviewed the records maintained by the Companypursuant to the rules prescribed by the Central Government for maintenance of Cost

Records under sub-section 1 of Section 148 of the Act and are ofopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examinations of the records.

vii) In respect of statutory dues:

a) According to the information and explanations given to us and therecords of the Company examined by us in our opinion the Company is regular indepositing the undisputed statutory dues including provident fund employees stateinsurance income tax sales tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues as applicable with the appropriateauthorities.

b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andother material statutory dues were in arrears as at March 31 2018 for a period of morethan six months from the date they became payable.

c) According to the information and explanations given to us there areno dues of Income Tax .Sales Tax Wealth Tax Service Tax duty of Customs duty ofExcise Value Added Tax Cess which have not been deposited as on March 312018 on accountof disputes.

viii) The Company does not have any loans or borrowings from anyfinancial institutions banks government or debenture holders during the year.Accordingly paragraph 3(viii) of the Order is not applicable.

ix) The Company has not raised monies by way of initial public offer orfurther public offer (including debt instruments). The term loans were used for thepurposes for which those were raised.

x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the Financial Statements and according to theinformation and explanations given to us no material fraud by the Company or on theCompany by its officers or employees has been noticed or reported during the course of ouraudit.

xi) In our opinion and according to the information and explanationsgiven to us the Company has not paid / provided managerial remuneration during the year.Hence paragraph 3(xi) of the Order is not applicable.

xii) The Company is not a Nidhi Company and hence reporting underclause 3(xii) of the Order is not applicable.

xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with related partiesare in compliance with section 177 and 188 of the Act where applicable.

The details of such related party transactions have been disclosed inthe financial statements as required by the applicable accounting standards.

xiv) According to the information and explanations given to us andbased on our examination of the records the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year and hence reporting under clause 3 (xiv) of the Order is not applicable.

xv) According to the information and explanations given to us and basedon our examination of the records the Company has not entered into non-cash transactionswith directors or persons connected with him. Accordingly paragraph 3(xv) of the Order isnot applicable.

xvi) The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934. Accordingly provisions of clause 3(xvi) of theOrder is not applicable to the Company.

For D Sampathkumar& Co.

Chartered Accountants

(Firm Registration No. 0003556S)

M K Ravindran (Partner) Membership No.020887 Place : Chennai Date :May30 2018

Annexure B to Independent Auditors' Report of even date on thefinancial statements of Tejassvi Aaharam Limited (Formerly Sterling Spinners Ltd)

(Referred to in paragraph 2(f) under "Report on Other Legal andRegulatory Requirements" section of our report of even date)

Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of sub-section 3 of Section 143 of the Companies Act 2013 ('the Acf)

We have audited the internal financial controls over financialreporting of Tejassvi Aaharam Limited (Formerly Sterling Spinners Ltd) ('the company') asof 31st March 2018 in conjunction with our audit of the financial statements of theCompany for the year ended and as on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ('the‘Guidance Note") These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany's policies the safeguarding of its assets the prevention and deduction of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibilities

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Standards on Auditing prescribed under section 143(10) of the Act andthe Guidance Note to the extent applicable to an audit of internal financial controls.Those Standards and Guidance Note required that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over the financialreporting included obtaining an understanding of internal financial control overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting.

A Company's internal financial control over financial reporting is aprocess design 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 overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransaction 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 the authorizationsof the Management and directors of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the Company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrols over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting 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.

For D Sampathkumar& Co.

Chartered Accountants (Firm Registration No. 03556S)

M K Ravindran (Partner)

Membership No.020887 Place : Chennai Date :May 30 2018