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Thambbi Modern Spinning Mills Ltd.

BSE: 514484 Sector: Industrials
NSE: N.A. ISIN Code: INE830D01016
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NSE 05:30 | 01 Jan Thambbi Modern Spinning Mills Ltd
OPEN 7.01
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VOLUME 1
52-Week high 8.40
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OPEN 7.01
CLOSE 7.01
VOLUME 1
52-Week high 8.40
52-Week low 6.60
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Thambbi Modern Spinning Mills Ltd. (THAMBBIMODERN) - Auditors Report

Company auditors report

To

The Members of

THAMBBI MODERN SPINNING MILLS LIMITED

1. Opinion

We have audited the accompanying Financial Statements of M/s. Thambbi ModernSpinning Mills Limited

("the Company") which comprise the Balance Sheet as at 31 March 2020 theStatement of Profit and Loss for the year then ended and a summary of the SignificantAccounting Policies and other explanatory information.

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 (‘the Act') in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2020 its Loss for the year ended on thatdate.

2. Basis of Opinion

We conducted our audit in accordance with the standards on auditing (SAs) specifiedunder section 143 (10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the auditor's responsibilities for the audit of thefinancial statements section of our report. We are independent of the Company inaccordance with the code of ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and thecode of ethics.

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

3. Information other than the Financial Statements and Auditors' Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The Other information comprises of the Board's Report including itsAnnexures and other report placed by the management before the members.

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.

4. Management's Responsibility 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position and financial performance of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 and the companies(Accounting Standards) Amendment Rules 2016. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

5. Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

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

a) 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.

b) Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances.

c) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

d) Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

e) Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions 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 themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

6. Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditor's Report) Order 2020 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Companies Act2013 we give in the Annexure

‘A' a statement on the matters specified in paragraphs 3 and 4 of the Order tothe extent applicable.

II. 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 and the Statement of Profit and Loss dealt with by this Report arein 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 Rule 7 of the Companies(Accounts) Rules 2014;

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 termsof Section 164(2) of the Act;

f) Since the Company's turnover as per last audited financial statements is less thanRs. 50 crores and its borrowings from Banks and Financial Institutions at any time duringthe year is less than Rs 25 crores the Company is exempted from getting an audit opinionwith respect to the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls vide notification dated June 13 2017;

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of 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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would have any impact on itsfinancial position; ii. The Company did not have any long-term contracts includingderivative contracts for which there were having any material foreseeable losses; and iii.There were no amounts which were required to be transferred to the Investor Education and

Protection Fund by the Company during the year ended 31st March 2020.

Place : Chennai For R. SUNDARARAMAN & CO.
Chartered Accountants
Date : June 17 2020 (FRN: 004219S)
S. SRIRAM
Partner
Membership No : 202813
UDIN NO : 20202813AAAADP7030

ANNEXURE "A" 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)

1) In respect of fixed assets :

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

b) The fixed assets have been physically verified by the management during the year inaccordance with the regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

c) The title deeds of immovable properties are held in the name of the Company.

d) The Company has not revalued its tangible or intangible assets or both during theyear.

e) No proceedings have been initiated or are pending against the Company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder.

2) In respect of Inventory :

a) In our opinion and according to the information and explanations given to us theCompany does not hold any stock of inventory and therefore the provisions of clause ii(a)of the Companies (Auditors Report) Order 2020 is not applicable. b) The Company does nothave any working capital facility with Banks.

3) The Company has not made investments in provided any guarantee or security orgranted loans or advances in the nature of loans both secured or unsecured to companiesfirms limited liability partnerships or other parties covered in the register maintainedunder Section 189 of the Companies Act 2013.

4) The Company has not granted loans made investments provided guarantees andsecurity and therefore the provisions of clause iv of Companies (Auditor's Report) Order2020 are not applicable.

5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under are notapplicable to the Company.

6) We were informed that the Central Government has not prescribed the maintenance ofcost records under sub section (1) of Section 148 of the Companies Act 2013 in respectof the activities carried on by the Company.

7) In respect of statutory dues.

a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including goods and services tax provident fund employees'state insurance income tax sales tax custom duty excise duty cess service tax andother material statutory dues applicable to it.

b) According to the information and explanations given to us no undisputed amountspayable in respect of goods and services tax provident fund employees state insuranceincome tax sales tax custom duty excise duty service tax and cess were in arrears asat 31st March 2020 for a period of more than six months from the date theybecame payable.

c) According to the information and explanations given to us there are no amountspayable in respect of goods and services tax income tax sales tax custom duty exciseduty service tax and cess which have not been deposited on account of any dispute.

8) There are no transactions not recorded in the books of account that have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961.

9) In respect of Borrowings :

a) The Company has not defaulted in repayment of loans or other borrowings or in thepayment of interest thereon to any lender.

b) The term loans were applied for the purpose for which the loans were obtained.

c) No funds raised on short term basis have been utilised for long term purposes.

d) The Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associated or joint ventures.

e) The Company has not raised loans during the year on the pledge of securities held inits subsidiaries joint ventures or associate companies.

10) In respect of IPO and further public offer :

a) As per the records of the Company and information and explanations given to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments). The Company has also not taken any term loans. b) TheCompany has not made any preferential allotment or private placement of shares orconvertible debentures during the year.

11) In respect of fraud :

a) In our opinion and according to the information and explanations given to us nofraud on or by the Company has been noticed or reported during the course of our auditthat causes the financial statements to be materially misstated.

b) No report under sub-section (12) of section 143 of the Companies Act has been filedby the Auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government.

c) No whistle blower complaints have been received during the year by the Company.

12) The Company is not a Nidhi Company and therefore the provisions of clause xii ofCompanies

(Auditor's Report) Order 2020 are not applicable.

13) The transactions with the related parties are in compliance with sections 177 and188 of the Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.

14) The requirement for Internal Audit is not mandatory for the Company as per Section138 of the Companies Act 2013 and Rule 13 of Companies (Accounts) Rules 2014 andtherefore the provisions of clause xiv of the Companies (Auditor's Report) Order 2020 arenot applicable.

15) The Company has not entered in to any non cash transactions with directors orpersons connected with him and therefore the provisions of clause xv of Companies(Auditor's Report) Order 2016 are not applicable.

16) In respect of Registration under RBI Act 1934

a) The Company is not required to be registered under Section 45-IA if the Reserve Bankof India Act 1934 and therefore the provisions of clause xvi of Companies (AuditorsReport) Order 2016 are not applicable.

b) The Company has not conducted any Non Banking Financial or Housing FinanceActivities without a valid Certificate of Registration (CoR) from the Reserve Bank ofIndia as per the Reserve Bank of India Act 1934. c) The Company is not a Core InvestmentCompany (CIC) as defined in the regulations made by the Reserve Bank of India. d) TheGroup does not have more than one CIC as part of the Group.

17) The Company has incurred cash losses in the financial year and in the immediatelypreceding financial year. The cash losses for the year is Rs. 13429827/-.

18) There has been no resignation of the statutory auditors during the year.

19) On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the Board of Directors and management plans we areof the opinion that no material uncertainty exists as on the date of the audit report thatCompany is capable of meeting its liabilities existing at the date of balance sheet as andwhen they fall due within a period of one year from the balance sheet date.

20) Corporate Social Responsibility (CSR) as specified under Section 135 of theCompanies Act 2013 is not applicable for the Company.

21) There are no qualifications or adverse remarks in the Companies (Auditor's Report)Order (CARO) report.

Place : Chennai For R. SUNDARARAMAN & CO.
Chartered Accountants
Date : June 17 2020 (FRN: 004219S)
S. SRIRAM
Partner
Membership No : 202813
UDIN NO : 20202813AAAADP7030

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