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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 15.60
PREVIOUS CLOSE 15.60
VOLUME 22151
52-Week high 15.61
52-Week low 7.74
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 15.60
CLOSE 15.60
VOLUME 22151
52-Week high 15.61
52-Week low 7.74
P/E
Mkt Cap.(Rs cr) 9
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 Report on the Audit of theFinancial Statements

1. Opinion

We have audited the accompanying Financial Statements of M/s. Thambbi Modern SpinningMills Limited ("the Company") which comprise the Balance Sheet as at 31 March2022 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Cash Flows and the Statement of Changes in Equity for the year then ended anda summary of the Significant Accounting Policies and other explanatory information(hereinafter referred to as "the financial statements").

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 fair view inconformity with the Indian Accounting Standards prescribed under Section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended ('Ind AS')and other accounting principles generally accepted in India of the state of affairs ofthe Company as at 31 March 2022 its total loss total comprehensive income its cashflows and the changes in equity for the year ended on that date.

2. Basis of Opinion

We conducted our audit of the financial statements in accordance with the standards onauditing (SAs) specified under section 143 (10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the auditor'sresponsibilities for the audit of the financial statements section of our report. We areindependent of the Company in accordance with the code of ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Act and the rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's code of ethics. We believe that the audit evidenceobtained by us is sufficient and appropriate to provide a basis for our audit opinion onthe financial statements.

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

• The Company's Board of Directors is responsible for the other information. Theother information comprises the information included in the Board's Report includingAnnexures to Board's Report but does not include the financial statements and ourauditor's report thereon.

• Our opinion on the financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

• In connection with our audit of the Financial Statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained the courseof our audit or otherwise appears to be materially misstated.

• If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing 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 Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India.

The responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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.

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 as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's 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 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 financial control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

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 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein Annexure 'A' a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 including Other ComprehensiveIncome Statement of Cash Flows 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 Indian AccountingStandards specified under Section 133 of the Act;

e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 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 including derivative contracts forwhich there were having any material foreseeable losses; and

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

a) The management has represented that to the best of it's knowledge and belief asdisclosed in the notes to the accounts no funds (which are material either individuallyor in the aggregate) have been advanced or loaned or invested (either from borrowed fundsor share premium or any other sources or kind of funds) by the company to or in any otherperson(s) or entity (ies) including foreign entities.

b) The management has represented that to the best of its knowledge and belief asdisclosed in the notes to the accounts no funds (which are material either individuallyor in the aggregate) have been received by the company from any person(s) or entity(ies)including foreign entities.

c) Based on the audit procedures that we have considered reasonable and appropriate inthe circumstances nothing has come to our notice that cause us to believe that therepresentation given by the Management under sub-clause (i) and (ii) of Rule 11(e) asprovided under (a) and (b) above contain any material misstatement.

v. No dividend has been declared or paid during the year by the company.

Place : Chennai For R. SUNDARARAMAN & CO.
Chartered Accountants
Date : 04.05.2022 (FRN:004219S)
S. SRIRAM
Partner
Membership No : 202813
UDIN NO : 22202813AIKBVS2133

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 according to aphased programme designed to cover all the items over a period of two years which in ouropinion is reasonable having regard to the size of the Company and nature of its assets.According to the information and explanation given to us no material discrepancies werenoticed on such verification.

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

d) The Company has not revalued any of its property plant and equipment and intangibleassets during the year.

2) In respect of Inventory and Working Capital :

a) As explained to us the Company does not hold any stock of inventory and thereforethe provisions of clause ii(a) of the Order is not applicable.

b) According to the information and explanations given to us at any point of time ofthe year the Company has not been sanctioned any working capital facility from banks orfinancial institutions and hence reporting under clause ii(b) of the Order is notapplicable.

3) The Company has not made any investments in provided any guarantee or security andgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms LLPs or any other parties during the year and hence reporting under clause iii ofthe Order is not applicable.

4) The Company has not granted any loans or made any investments or provided anyguarantees or securities and hence reporting under clause iv of the Order is notapplicable.

5) The Company has not accepted any deposit or amounts which are deemed to be deposits.Hence reporting under clause v of the Order is not applicable.

6) Having regard to the nature of the Company's business / activities reporting underclause vi of the Order is not applicable.

7) In respect of statutory dues :

a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including goods and services act provident fund employees'state insurance income tax sales tax custom duty excise duty cess goods and servicestax and other 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 act provident fund employees state insuranceincome tax sales tax custom duty excise duty service tax and cess were in arrears asat 31st March 2022 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 act income tax sales tax custom duty exciseduty goods and services tax and cess which have not been deposited on account of anydispute.

8) According to the information and explanations provided to us there were notransactions relating to previously unrecorded income that were surrendered or disclosedas income in the tax assessments under the Income Tax Act 1961 (43 of 1961) during theyear.

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 Company has not been declared wilful defaulter by bank or financial institutionor government or any government authority.

c) The Term Loans have been utilised for the purpose for which the loans were obtained.

d) The Company has not raised funds on short term basis and hence reporting underclause ix(d) of the Order is not applicable.

e) The Company did not have any subsidiary or associate or joint venture during theyear and hence reporting under clause ix(e) of the Order is not applicable.

f) The Company has not raised any loans during the year on the pledge of securitiesheld in its subsidiaries associates and joint ventures.

10) In respect of Funds Raised and Utilisation :

a) The Company has not raised any money by way of initial public offer further publicoffer (including debt instruments) during the year and hence reporting under clause x(a)of the Order is not applicable.

b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause x(b) of the Order is not applicable.

11) In respect of Fraud and Whistle Blower Complaints :

a) To the best of our knowledge no fraud by the Company and no material fraud on theCompany has been noticed or reported during the year.

b) To the best of our knowledge no report under sub-section (12) of section 143 of theCompanies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies 9Auditand Auditors) Rules 2014 with the Central Government during the year and upto the dateof this report.

c) As represented to us by the Management there were no whistle blower complaintsreceived by the Company during the year.

12) The Company is not a Nidhi Company and hence reporting under clause xii of theOrder is not applicable.

13) In our opinion the Company is in compliance with Sections 177 and 188 of theCompanies Act where applicable for all transactions with the related parties and thedetails of related party transactions have been disclosed in the Financial Statementsetc. as required by the applicable accounting standards.

14) Internal Audit System

a) In our opinion the Company has an adequate internal audit system commensurate withthe size and nature of its business.

b) We have considered the internal audit reports issued to the Company during theyear.

15) In our opinion the Company has not entered in to any non-cash transactions withits directors or persons connected with its directors and hence provisions of section 192of the Companies Act 2013 are not applicable to the Company.

16) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934 and hence reporting under clause xvi (a) (b) and (c) of the Orderis not applicable.

17) The Company has incurred cash losses during the financial year covered by our auditand the immediately preceding financial year.

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

19) On the basis of the financial ratios ageing and expected dated of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

20) The provisions of clause xx of the Companies (Auditors Report) Order 2020 withregard to obligations under Corporate Social Responsibility are not applicable to theCompany.

21) The Company does not have any subsidiary or associate company and consolidatedfinancial statements are not prepared. Hence reporting under clause xxi of the Order withregard to consolidated financial statements are not applicable to the Company.

Place : Chennai For R. SUNDARARAMAN & CO.
Chartered Accountants
Date : 04.05.2022 (FRN:004219S)
S. SRIRAM
Partner
Membership No : 202813
UDIN NO : 22202813

PRACTISING CHARTERED ACCOUNTANT'S REPORT ON CORPORATE GOVERNANCE TO THE MEMBERS OFTHAMBBI MODERN SPINNING MILLS LIMITED

To

The Members

THAMBBI MODERN SPINNING MILLS LIMITED

We have examined the compliance of conditions of Corporate Governance by THAMBBI MODERNSPINNING MILLS LIMITED for the year ended 31st March 2022 as stipulated in the Securitiesand Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations2015 and other applicable amendments from time to time (as was applicable from effective)with the stock exchange.

The compliance of conditions of corporate governance is the responsibility of themanagement. Our examination was limited to procedure and implementation thereof adoptedby the company for ensuring the compliance of the conditions of corporate governance. Itis neither an audit nor an expression of opinion on the financial statements of theCompany.

In our opinion and to the best of our information and according to the explanationsgiven to us we certify that the company has complied in general with the conditions ofcorporate governance as stipulated in the above mentioned Listing Agreement.

We further state that such compliance is neither an assurance as to the futureviability of the Company nor the efficiency or effectiveness with which the management hasconducted the affairs of the Company.

Place: Chennai For R. SUNDARARAMAN & CO. Chartered Accountants
Date : May 04 2022 (FRN:004219S)
S. SRIRAM
Partner
Membership No : 202813
UDIN NO : 21202813AAAAFC9726

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