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Eastern Silk Industries Ltd.

BSE: 590022 | NSE: EASTSILK |

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Series: BE | ISIN: INE962C01027 | SECTOR: Textiles - Synthetic & Silk

BSE Live

Jan 20, 16:00
9.65 -0.50 (-4.93%)
Volume
AVERAGE VOLUME
5-Day
28,565
10-Day
44,115
30-Day
139,089
11,810
  • Prev. Close

    10.15

  • Open Price

    9.65

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    9.65 (132369)

NSE Live

Jan 20, 15:59
9.65 -0.50 (-4.93%)
Volume
AVERAGE VOLUME
5-Day
77,548
10-Day
186,937
30-Day
190,215
62,738
  • Prev. Close

    10.15

  • Open Price

    9.65

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    9.65 (7701)

Annual Report

For Year :
2015 2014 2013 2012 2011 2010 2009 2008 2007

Auditor's Report

Report on the Financial Statements We have audited the accompanying financial statements of Eastern Silk Industries Limited which comprise the Balance Sheet as at 31st March, 2013, the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information. Management''s responsibility for the Financial Statements Management is responsible for the preparation of these 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 Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 .This responsibility includes the design, implementation and maintenance of internal control 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. Auditor''s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India. a) In the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2013; 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 of the Cash Flow Statement, of the cash flows for the year ended on that date. EMPHASIS OF MATTER We draw attention to ; a) Note no. 36 to the financial statements which states that the losses of the Company for the year and preceding years as per Books of Accounts stand at Rs. 24,489.96 lacs (Previous year Rs. 14,954.05 lacs) as on 31st March, 2013. After adjustment of the losses, the shareholders funds stands at Rs. 12,897.98 lacs (Previous year Rs. 25,232.33 lacs). As stated, the management has a strategic plan for the revival of the Company and is hopeful in improving the financial health of the Company in near future. Accordingly the Financial Statement for the year has been drawn up by the management as per going concern assumption. b) Note No. 37 to the financial statement which states that Sundry Debtors of Rs. 24,804.33 lacs (Previous year Rs. 23,536.05 lacs) receivable from overseas buyers towards sale consideration of goods exported, against which the company has filed money suits in the Hon''ble High Court Kolkata, which has been considered good for recovery by the management. We are unable to express any opinion on correctness and/or adequacy of the provision for bad & doubtful debts. c) Note No. 39 to the financial statements regarding recognition of Net Deferred Tax Assets (DTA) of Rs. 2,193.03 lacs (Previous year Rs. 2,379.95 lacs) in the accounts based on future profitability projection made by the management. However, we are unable to express any opinion on the projections and their consequential impact, if any, on the recognition of such DTA Report on Other Legal and Regulatory requirements 1. As required by the Companies (Auditor''s Report) Order, 2003. Issued by the Central Government of India in terms of sub-section (4A) of section 227 of the act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 2. As required by section 227(3) of the act, we report that: (i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. (ii) In our opinion proper books of account as required by law have been kept by the company so far as appears from our examination of those books; (iii) The Balance sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account; (iv) In our opinion, the Balance sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act; (v) On the basis of written representation received from the directors as at 31st March, 2013 and taken on record by the Board of Directors, none of the directors is disqualified as at 31st March, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act. ANNEXURE REFERRED TO IN PARAGRAPH 1 OF REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS i) a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. b. The management has physically verified certain fixed assets during the year in accordance with a programme of verification, which, in our opinion, provides for physical verification of the fixed assets at reasonable intervals having regard to the size of the Company and nature of its assets. According to the information and explanations given to us no material discrepancies were noticed on such verification. c. In our opinion and according to explanations given to us, Fixed Assets disposed off during the year were not substantial and as such the disposal has not affected the going concern concept of the Company. ii) a. As explained to us, inventories have been physically verified by the management at regular intervals during the year. b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. c. In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification as compared to the book records. iii) As explained to us and according to the information furnished to us, the Company has neither granted nor taken any loans, (except a sum of Rs. 1,474 lacs-unsecured, interest free, from the promoters) secured or unsecured, to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956 and as such clause (iii) of the Order is not applicable. iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and nature of its business for the purchase of inventory, fixed assets and also for the sale of goods. During the course of our audit, we have not observed any major weakness in internal controls. v) In respect of transactions entered in the register maintained under Sec. 301 of the Companies Act, 1956: a. To the best of our knowledge and belief and according to the information and explanations given to us, transactions that needed to be entered into the register pursuant to Section 301 of the Companies Act, 1956 have been so entered. b. In our opinion and according to the information and explanations given to us, the transactions in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and aggregating during the year to Rs. 5 lacs or more in respect of any party have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. vi) The Company has not accepted any deposits from the public and as such clause (vi) of the Order is not applicable. vii) In our opinion, the Company has an adequate internal audit system commensurate with the size and nature of its business and needs to be further strengthened. viii) We have broadly reviewed the books of account and records maintained by the Company relating to ''Textiles'' pursuant to Sec. 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of these records. ix) According to the information and explanations given to us in respect of the statutory dues: a. The Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor''s Education and Protection Fund, Employees'' State Insurance, Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2013 for a period of more than six months from the date they became payable. b. According to the information and explanations given to us, details of dues of Customs Duty/ Excise Duty/Income Tax & Sales Tax which have not been deposited on account of any dispute are as follows : Name of the Statute Name of the Dues Amount (Rs. in lacs) Central Excise Act Excise Duty and Penalty 26.72 Employees State Employees State Insurance 6.03 Insurance Act Custom Duty Act Custom Duty 109.77 Customs Duty Act Custom Duty 148.50 Customs Duty Act Custom Duty 78.92 Customs Duty Act Custom Duty 28.70 Customs Duty Act Custom Duty 44.07 Income Tax Act Income Tax 2.31 Income Tax Act Income Tax 71.51 NAME Period to which Forum where the amount dispute is pending relate Custom Duty Act 2002-03 Deputy Commissioner, Central Excise Custom Duty Act 1995-96 & Asst. Director, ESIC 2002-03 Custom Duty Act 2001-02 Hon''ble High Court of Kamatka Custom Duty Act 2005-06 Commissioner of Custom (Port), Kolkata Custom Duty Act 2003-04 CESTAT, Bangalore Custom Duty Act 2003-04 Commissioner of Custom Custom Duty Act 2002-03 Commissioner of Custom Custom Duty Act 2004-05 I.T.A.T (Kolkata) Custom Duty Act 2010-11 I.T.A.T (Kolkata) x) The Company has accumulated losses at the end of financial year and has also incurred cash losses during the financial year covered by our audit .The company has also incurred cash losses in the previous financial year. xi) In our opinion and according to the information & explanations given to us, the Company has not defaulted in repayment of term loan installment & Interest to Banks and/or to Financial Institutions. xii) In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities. xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund/Society and as such reporting under clause (xiii) of the Order is not applicable to the Company. xiv) Based on our examination of the records and according to the information and explanations given to us, Company is not dealing or trading in shares, securities, debentures and other investments. We also report that the Company has held the shares, securities, debentures and other investments in its own name. xv) According to the information and explanations given to us, the Company has given a corporate guarantee to a bank for an Associate Company for Rs. 650.00 Lacs for availing loan from bank by the said Company, the terms of conditions of which are not prima facie prejudicial to the interest of the Company. xvi) The company has not obtained any fresh term loans during the year under review. Accordingly, the provisions of clause (xvi) of the Order are not applicable to the company. xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that prima facie funds raised on short-term basis have been not used for long-term investments. xviii) The Company has not made preferential allotment of shares during the year to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956. xix) The Company has not issued any debentures during the year. xx) The Company has not raised any money by public issue during the year. xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the company was noticed or reported during the course of our audit. For B. K. SHROFF & CO. Firm Registration No.: 302166E Chartered Accountants (L.K.Shroff) 23A, Netaji Subhas Road, PARTNER Kolkata Membership No. : 60742 The 29th May, 2013