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Pasupati Spinning and Weaving Mills Ltd.

BSE: 503092 | NSE: PASUPATSPG | Series: NA | ISIN: INE909B01020 | SECTOR: Textiles - Spinning - Synthetic Blended

BSE Live

Dec 07, 16:00
20.80 0.95 (4.79%)
Volume
AVERAGE VOLUME
5-Day
484
10-Day
450
30-Day
874
470
  • Prev. Close

    19.85

  • Open Price

    19.85

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Dec 27, 11:22
11.00 0.00 (0.00%)
Volume
No Data Available
1,100
  • Prev. Close

    11.00

  • Open Price

    -

  • Bid Price (Qty.)

    - (0)

  • Offer Price (Qty.)

    - (0)

Pasupati Spinning and Weaving Mills is not listed on NSE

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 Pasupati Spinning & Weaving Mills Limited (the Company) which comprise the Balance Sheet as at 31 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 (the Act). 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 judgment, 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. Basis of Qualified Opinion a. Interest payable on amount of Rs. 600 lacs due to JMFARC, which was to be converted into OCCD is not determinable as the negotiations are not yet finalized. In these accounts, the company has paid/provided interest on the loan amount @ 23% p.a. Difference, if any will be accounted for after finalisation of negotiations (Refer Note no. 4(v)(c) of the accompanying notes to the financial statements). b. The company has claimed additional compensation in respect of part of factory land acquired in earlier years. The additional compensation of Rs. 24276787 will be accounted for as and when received. Had the additional compensation been accounted for the profit for the year and other current assets would have been higher by the said amount. (Refer Note no. 12 of the accompanying notes to the financial statements). c. The company has paid remuneration of Rs. 1877359 (including Rs. 1187496 relating to earlier years) to directors for which approval of Central Government is yet to be received. Had the remuneration not been paid the profit for the year and cash and cash equivalents would have been higher by the said amount. (Refer Note no. 37(b) and 37(c) of the accompanying notes to the financial statements). d. The company has during the year written back provision of Rs. 27555087 (net of payment of Rs. 3734000) towards excise duty demands on legal advice. The company has been advised that no liability is likely to arise against the demands and hence provision is not required. We are unable to comment as the demands are still contested in appeals (Refer Note no. 22 of the accompanying notes to the financial statements). Qualified Opinion In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matters described in the Basis of Qualified Opinion paragraph, 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 31 March 2013; b) In the case of the Statement of Profit and Loss, of the Profit 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. Report on Other Legal and Regulatory requirements 1. As required by the Companies (Auditor''s Report) Order, 2003 (the Order), 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) Except for the possible effects of the matters described in the Basis of Qualified Opinion paragraph, 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; and (v) As per information and explanations given to us, we report that as on 31.3.2013 none of the directors of the company are disqualified from being appointed as a director of the company under Section 274((1)(g) of the Companies Act, 1956. As the company had not redeemed its debentures on due dates and as the default continued for more than a year, directors of the company were not qualified for being appointed as directors of any other public company in terms of provision of Section 274(1)(g) of the Companies Act, 1956 as amended by the Companies Amendment Act, 2000. Board for Industrial and Financial Reconstruction (BIFR) has sanctioned rehabilitation scheme for the company vide its order dated 17.2.2012. The said scheme has approved payments of the settled amount to debenture-holders in instalments. The payment as approved by BIFR is being made and there is no default in such payment. Besides, one of the directors has been appointed after the scheme has been sanctioned. He has certified that he is not disqualified from being appointed as a director in any other company. ANNEXURE REFERRED TO IN PARAGRAPH (1) UNDER THE HEADING OF ''REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS'' OF OUR REPORT OF EVEN DATE (i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. (b) As explained to us, all the fixed assets have been physically verified by the management according to a regular program which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies with respect to book records 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, physical verification of inventory (except material in transit and lying with third parties) has been conducted by the management at reasonable intervals. In our opinion, the frequency of verification is reasonable. (b) In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and nature of its business. (c) On the basis of our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventory. Discrepancies noticed on verification of inventory as compared to book records were not material and these have been properly dealt with in the books of accounts. (iii) (a) On the basis of the records of the company, the Company has not granted any loans, secured or unsecured to companies, firms and other parties covered in the register maintained under section 301 of the Companies Act, 1956 and hence para (iii) (a) to (d) of the order are not applicable to the company; (b) On the basis of the records of the company, the following are the particulars of loans taken by the company from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Name of the Party Relationship Opening Loan with Balance taken the company Rs. Rs. Sulabh Impex Ltd. Associate 5700000 Pasupati Olefin Ltd. Associate 6800000 Name Loan Year Maximum repaid end Balance balance Outstanding during the year Rs. Rs. Rs. Sulabh Impex Ltd. 5700000 5700000 Pasupati Olefin Ltd. 6800000 6800000 (c) In our opinion the rate of interest and other terms and conditions on which unsecured loans have been taken from Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not pirma facie prejudicial to the interest of the company. (d) In our opinion, the company is regular in repaying the principal amount as per stipulations and has been regular in payment of interest whenever 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 the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. No major weakness in the internal control system was observed during the course of audit. (v) According to the information and explanations given to us, during the year there were no transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956. Accordingly, paragraphs v (a) and (b) of the aforesaid order are not applicable. (vi) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from public as per provisions of sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposit) Rules, 1975. No order has been passed by the Company Law Board or National Company law Tribunal or Reserve Bank of India or any court or any other Tribunal. (vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business. (viii) We have broadly reviewed the books of account maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such accounts and records. (ix) (a) According to the records of the company, the company is not regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. According to information and explanations given to us the undisputed amounts outstanding as at 31st March, 2013 for a period of more than six months from the date they became payable are as under : Name of the statue Nature of dues Amount Period to which Rs. amount relates Sales Tax Haryana Demand 339148 2006-07 Service Tax Act Service Tax 380586 2009-10 Service Tax Act Service Tax 6472 2012-13 (x) As at 31.03.2013, the accumulated losses of the company are not more than fifty percent of its net worth. The company has not incurred cash losses during the financial year covered by our audit or in the immediately preceding financial year. (xi) The company has defaulted in payment of dues to financial institutions, banks and debenture-holders. Details as per company''s books of accounts are as under : Does not include amount for which one time settlement (OTS) has been negotiated with the lenders and repayment of dues has been rescheduled or the dues have been settled / rescheduled by BIFR vide its order dated 17.2.2012 and payments are being made accordingly. (xii) Based on our examination of documents and records maintained by the company, we are of the opinion that since the company has not granted any loan and advance on the basis of security by way of pledge of shares, debenture and other securities, it is not required to maintain records in respect thereof. (xiii) In our opinion the company is neither a chit fund nor nidhi / mutual benefit fund / society and hence paragraph 4 (xiii) of the aforesaid order is not applicable. (xiv) In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments and accordingly the provisions of paragraph 4(xiv) of the aforesaid order is not applicable. (xv) Based on our examination of the records we are of the opinion that the company has not given any guarantee for loans taken by others from banks or financial institutions. (xvi) In our opinion, term loans received during the year have been applied for the purpose for which they were obtained. (xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that funds raised on short term basis have not been used for long term investments. (xviii) During the year the company has made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of Companies Act, 1956. Since the allotment has been made in pursuance to the rehabilitation scheme sanctioned by BIFR, in our opinion, the price at which shares have been issued is not prejudicial to the interest of the company. (xix) During the year the company had not issued any debentures. The company has created security or charge in respect of debentures issued in earlier years. (xx) During the year under review no money was raised by public issue. (xxi During the course of our examination of the books and records of the company, carried out in accordance with auditing standards generally accepted in India, we have not come across any instance of fraud by the company or on the company, noticed or reported during the year. We have also not been informed of any such case by the management. For B. K. SHROFF & CO., Chartered Accountants Firm Registration No. 302166E 3/7-B, Asaf Ali Road, New Delhi-110 002. O. P. SHORFF Dated : May 27, 2013 Partner Membership No. 06329