To the Members of Sri Malini Spinning Mills Limited
Report on the Financial Statements
We have audited the accompanying standalone financial statementsof Sri Malini Spinning
Mills Limited, which comprise theBalance Sheetas at 31stMarch 2017, the
Statement of Profit and Loss, the CashFlow Statement for the year then ended, and a
summary of significantaccounting policies and other explanatory information.
Management s Responsibility forthe standalone Financial Statements
The Company s Board of Directors is responsible for the matters in section 134(5) of
the Companies Act, 2013 ("the Act") with respect to the preparation of these
standalone financial statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with the accounting
principals generally accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes the maintenance of adequate accounting records in accordance
with the provision of the Act for safeguarding of the assets of the Company and for
preventing and defecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial
control, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on thesefinancial statementsbased on our
audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about
whetherthe financial statementsare free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures inthe financial statements. The procedures selected depend on the auditor
s judgment, including the assessment of the risks of material misstatement ofthe financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company s preparation ofthe financial
statementsthat give true and fair view in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial controls system over
financial reporting and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness ofaccountingpolicies used and the reasonableness
of theaccounting estimates made by Companys Directors, as well as evaluating the overall
presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us,the aforesaid standalone financial statements,give the information required by
the Act in the manner so required and give a true and fair view in conformity with
theaccountingprinciples generally accepted in India; (a) in the case of theBalance Sheet,
of the state of affairs ofthe Companyas at March 31, 2017; (b) in the case of the
Statement of Profit and Loss, of the Loss for the year ended on that date, and (c) in the
case ofthe CashFlow Statement, ofthe cashflows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order, 2017 (the Order) as amended,
issued by the Central Government of Indiain terms of sub-section (11) of section 143 of
the Companies Act 2013, we give in the Annexure A, a statement on the matters specified in
the paragraphs 3 and 4 ofthe Order, to the extent applicable.
2. 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 best
of 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 bythe
Companyso far as it appears from our examination of those books.
(c) TheBalance Sheet, the Statement of Profit and Loss, andCashFlow Statement dealt
with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards 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
2017, taken on record by the Board of Directors, none of the directors is disqualified as
on 31stMarch, 2017, from being appointed as a director in terms of Section
164(2) of the Act.
(f) with respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in Annexure B ; and
(g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and 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 impact its financial
position.
ii. The Company did not have any long-term contracts including derivatives contracts
for which there were any material foreseeable losses.
iii. There were no amounts which required to be transferred towards the investor
protection fund by the company.
|
L. Narayanan |
| Place : Salem |
Chartered Accountant. |
| Date : 29.05.2017 |
Membership No. 202175 |
Annexure A to the Auditor s report
The annexure referred to in our independent Auditors report to the members of the
company on the standalone financial statements for the year ending 31st March 2017. We
report that;
1. Fixed Assets -
The company does not own any fixed assets.
2. Inventories -
The Company did not carry any inventories during the year under report and hence the
Physical verification of the same does not arise.
3. Loans and advances -
The company has not granted any loans, secured or unsecured to companies, firms or
other parties covered in the register maintained under section 189 of the Companies Act
during the year under report.
4. Loans, Investments, Guarantees and Other Securities -
The company has not granted any loans, made any Investments, given guarantee or other
security contravening the provisions of section 185 or section 186 of the Act.
5. Public deposits -
The company has not accepted any deposit from public during the year under report.
6. Cost Records -
The company has not done any manufacturing activity during the year under report and
therefore the maintenance of records for this year does not arise.
7. Statutory dues
The company is regular in depositing the undisputed statutory dues including,
income-tax, sales-tax, service tax, and other statutory dues with the appropriate
authorities.
8. Borrowings from Financial lnstitutions - The Company does not have any loans or
borrowings from any financial institutions, banks, government or debenture holders during
the year. Accordingly, paragraph 3(Viii) of the order is not applicable.
9. IPO and Further public offer - The Company did not raise any money by way of initial
public offer or further public offer (including debt instruments) and term loans during
the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
10. Frauds - No such instances have been noticed on or by the company during the course
of our audit.
11. Managerial Remuneration - According to the information and explanations give to us
and based on our examination of the records of the Company, the Company has paid/provided
for managerial remuneration in accordance with the requisite approvals mandated by the
provisions of section 197 read with Schedule V to the Act.
12. Provisions Applicable to Nidhi Companies - In our opinion and according to the
information and explanations given to us, the Company is not a nidhi company. Accordingly,
paragraph 3 (xii) of the Order is not applicable.
13. Related Party transactions - According to the information and explanations given to
us and based on our examination of the records of the Company, there are no transactions
with the related parties during the year under report.
14. Preferential allotment of shares - According to the information and explanations
give to us and based on our examination of the records of the Company, the Company has not
made any preferential allotment or private placement of shares or fully or partly
convertible debentures during the year.
15. Non Cash Transactions with Directors
According to the information and explanations given to us and based on our examination
of the records of the Company, the Company has not entered into non-cash transactions with
directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not
applicable
16. Registration with RBl.
The Company is not required to be registered under section 45-lA of the Reserve Bank of
lndia Act 1934.
17. Specified Bank Note
The Company did not deal in with the Specified Bank Note during the year under report
and hence the details required to be furnished are NIL.
|
L. Narayanan |
| Place : Salem |
Chartered Accountant. |
| Date : 29.05.2017 |
Membership No. 202175 |
Annexure - B to the Auditors Report
Report on the lnternal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ( the Act )
We have audited the internal financial controls over financial reporting of Sri Malini
Spinning Mills Limited ( the Company ) as of 31 March 2017 in conjunction with our audit
of the standalone financial statements of the Company for the year ended on that date.
Management s Responsibility for lnternal Financial Controls
The Company s management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of lnternal Financial Controls over Financial Reporting
issued by the lnstitute of Chartered Accountants of lndia ( lCAl ). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to company s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation 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 financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of lnternal Financial Controls over Financial Reporting
(the Guidance Note ) and the Standards on Auditing, issued by lCAl and deemed to be
prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls, both applicable to an audit of lnternal Financial
Controls and, both issued by the lnstitute of Chartered Accountants of lndia. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Company s internal financial controls system
over financial reporting.
Meaning of lnternal Financial Controls over Financial Reporting
A company s internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company s internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
company s assets that could have a material effect on the financial statements.
lnherent Limitations of lnternal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
ln our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31 March 2017, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
lnternal Financial Controls Over Financial Reporting issued by the lnstitute of Chartered
Accountants of lndia.
|
L. Narayanan |
| Place : Salem |
Chartered Accountant. |
| Date : 29.05.2017 |
Membership No. 202175 |
+91-9892691696
