We have audited the accompanying financial statements of SURYAAMBA
SPINNING MILLS LIMITED (the Company), which comprise the Balance
Sheet as at March 31,2015, the Statement of Profit and Loss and Cash
Flow Statement for the year ended, and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility for the financial Statements:
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act,2013 (the Act) with respect to
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 principles generally
accepted in India, including the accountings standards specified under
Section 133 of the Act, read with Rule 7 of Companies (Accounts)
Rules,2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and
detecting 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 controls, 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 duet of raudor error.
Our responsibility is to express an opinion on these financial
statements based 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 there under.
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 whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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 financial control relevant
to the Company''s preparation of the financial statements that give a
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 effectiveness of such
controls. An audit also includes evaluating the appropriateness of the
accounting policies used and the reasonableness of the accounting
estimates made by the Company''s Directors, 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 on the financial statements.
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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, 2015,
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 Cash flow statement, of the Cash Flows for the year
ended on that date.
Report on Other legal & Regulatory requirements:
1. As required by the Companies (Auditor''s Report) Order, 2015, (the
order), issued by the Central Government of India, in terms of
subsection (11) of section 143 of the Companies Act, 2013, we give in
Annexure a statement on the matters specified in paragraphs 3 and 4 of
the 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 them formation and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
c) The Balance Sheet and Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
f) With respect to the other matters to be included in the Auditor''s
Report m 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 tous:
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
derivative contracts for which there were any material foreseeable
m) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
The Annexure referred to in paragraph 1 under Report on other legal &
Regulatory Requirements of our Report of even date to the members of
SURYAAMBA SPINNING MILLS LIMITED, on the financial statements for the
year ended 31st March 2015, we report that:
(i) a) The Company has maintained proper records showing full
particulars clouding quantitative details and situation of fixed assets
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
(ii) a) The inventory has been physically verified during the year by
the management at reasonable intervals. In our opinion, the frequency,
of verification is reasonable and adequate.
b) 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) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) The company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act.
(iv) In our opinion and according to the information and explanations
given to us, Theresa adequate internal control system commensurate with
the size of the company and the nature of its business, for the
purchase of inventory fixed assets and for sale of goods.
(v) The Company has not accepted deposits from the public covered by
the provisions of Second 73 to 76 of the Compares'' Act,2013.
(vi) We have broadly reviewed the Cost records maintained by the
Company prescribed by the Central Govt for the maintenance of cost
records under Section 148 (1) of the Act and are of the opinion that
prima facie the presented accounts and records have been made and
maintained However we have not made a detailed examination of the
(vii)a) According to the information and explanations given to us and
based on the records of the company examined by us, the company is
regular in depositing the undisputed statutory dues, including
Provident Fund, Employees'' State Insurance Income-tax, Value Added Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty and other maternal
statutory dues, as applicable, with the appropriate authorities in
India. Employees'' State Insurance is not applicable to the company for
the current year.
b) According to the information and explanations given to us and based
on the records of the company examined by us, there are no dues of
Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty and Excise
Duty which have not been deposited on account of any disputes.
c) There are no amounts which are required to be transferred to
Investor Education and Protection Fund in accordance with the Relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
(viii) The company had no accumulated losses and has not incurred cash
losses during the financial year covered by our audit or in the
preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(x) The company has not given any guarantee
for loans taken by others from bank or financial institutions.
(xi) In our opinion, and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which the loans were obtained.
(xii) In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year.
Place: Hyderabad PARTNER
Date:28-May-2015 M.No. 201470