1. We have audited the Financial Statements of Super Spinning Mills Limited (‘the Company’), which comprise
the Balance Sheet as at 31 March 2025, the statement of Profit and Loss including other comprehensive
income, the statement of changes in equity, the Cash flow statement, and notes to the financial statements for
the year then ended, including a summary of significant accounting policies and other explanatory information
(hereinafter referred to as “the Financial Statements”).
2. 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 Companies Act, 2013 (“the Act”) in the manner so
required and give a true and fair view in conformity with the accounting principles generally accepted in India,
of the state of affairs of the Company as at 31 March 2025, its loss and other comprehensive income, changes
in equity, and its cash flows for the year ended on that date.
Basis for opinion
3. We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under section 143(10)
of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company in accordance with
the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of the Act and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to
provide a basis for our opinion on the financial statements.
Key audit matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the financial year ended 31 March 2025. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures, including the procedures performed to address the
matters below, provide the basis for our audit opinion on the accompanying financial statements.
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Key Audit Matters
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How the key audit matter was addressed in our
audit
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4.1 Impact on Going Concern Assumption as a result of discontinuation of Textile Activity and
evaluation of impairment on the textile activity assets
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The Textile segment has incurred losses for various
years and had been functioning below rated capacities
and with varying revenue year to year. The Company
has discontinued the textile segment activity and has
also re-classified the Property, Plant and Equipment
specifically related to textile segment activity as
Investment Property during the financial year 2023¬
24.
Considering the fact that the assets and liabilities
of such discontinued activity (textile segment) have
significant impact on the overall assets of the entire
company and therefore affect the going concern
principles. Considering the existence of doubt related
to the conditions which cast significant doubt on going
concern assumption and further the consequential
assessment of impairment of such assets related to
the discontinued activity as a cash generating unit,
this has been considered as a key audit matter.
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We have evaluated the management's assessment
of the Company's ability to continue as a Going
Concern, which included Financial, Operational
and other events/conditions. Our Evaluation of the
assessment of Going Concern assumption included
the following:
• Evaluation of the process, the management
followed to make its assessment
• Assumptions on which the assessment is based
and management's plans for future action
and alternate business plans available to the
management
• Feasibility of management's plans in the
circumstances.
• Medium and long-term financing ability of the
Company and management/group's ability to
fund and meet the company's obligations under
support arrangement.
• Past practices followed, strategies and alternate
usage of assets of the company by the
management, and Cash flow forecasts prepared
by the management.
• Inquiries with the management of events or
conditions beyond management's assessment
• Reviewed subsequent events and facts that
become known to us occurring between the
date of the financial statements and the date of
auditor's report.
Based on the above assessment we have obtained
sufficient appropriate audit evidence about the
appropriateness of the management's use of Going
Concern assumption and concluded that there is no
material uncertainty about the Company's ability to
continue as Going concern.
Further we have also evaluated the management's
estimate of the recoverable amount of the assets of
the textile activity and the management's conclusion
and impairment provision arrived thereon.
Our conclusions are based on the audit evidence
obtained up to the date of our auditor's report.
Our Opinion is not modified in respect of this matter.
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Key Audit Matters
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How the key audit matter was addressed in our
audit
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4.2 Disputed tax & other liabilities (Refer Note No:3(q) & 37 (a)(i),(ii) and (iii) to the Financial Statements)
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The Company is required to discharge direct and
indirect tax obligations under various legislations, as
may be applicable.
The tax authorities have raised certain tax demands
on the Company in respect of the past periods. The
Company has disputed such demands and has
appealed/ contested against them at appropriate
forums. As at March 31, 2025 the Company has an
amount of Rs. 681.55 Lakhs (Previous Year- Rs.
670.33 Lakhs) determined pertaining to various
pending tax litigations.
Ind AS 37 requires the Company to perform an
assessment of the probability of economic outflow on
account of such disputed tax matters and determine
whether any particular obligation needs to be
recorded as a provision in the books of account or
to be disclosed as a contingent liability. Considering
the significant degree of judgement applied by the
management in making such assessments and the
resultant impact on the financial statements, we have
considered it to be a key audit matter.
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In assessing the exposure of the Company for the
tax litigations, we have performed the following
procedures:
• Obtained an understanding of the process laid
down by the management for performing their
assessment taking into consideration past legal
precedents, changes in laws and regulations
etc.
• Assessed the processes and entity level
controls established by the Company to ensure
completeness of information with respect to tax
litigations.
• Obtained suitable representations from the
management with respect to tax litigations and
the forum where they are pending including the
issues under litigation.
• The grounds of dispute taken by Management
were considered to enable us to take a
judgement. These matters continue to remain in
the same status as in the previous year.
Our Opinion is not modified in respect of this matter.
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4.3 Fair value measurement of Investment in Equity Shares of Andhra Pradesh Gas Power Corporation
Limited (Refer Note 6 to the Financial Statements)
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As at 31 March 2025, the cost of investment in
9,38,000 Equity Shares of Andhra Pradesh Gas Power
Corporation Limited amounted to Rs. 1326.05 lakhs
(Previous Year - Rs. 1326.05 Lakhs). The investment
was remeasured at its fair value, which stood at Rs.Nil
as at 31 March 2025 (Rs.Nil as at 31 March 2024)
The fair value of the investment in such investment
are assessed based on assumptions that require the
management to exercise their judgement. As a result,
the company recorded a total fair value adjustment
for the year ended 31 March 2025 amounting to
Rs. Nil Lakhs (for the year ended 31 March 2024
Rs.403.59 Lakhs). We focussed on this area due to
significant carrying amount of the investment and the
significant management judgement and estimates
involved in measuring the fair value.
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We performed the following principal audit procedures
in relation to the management's estimation of the fair
value of the investments:
a) Evaluated the design and implementation and
tested the operating effectiveness of the controls
(including techniques) relating to management's
assessment of fair value amount of investment.
b) Evaluated the Disclosures made in the financial
statements and the related compliance with the
requirements of the applicable accounting standards.
Our Opinion is not modified in respect of this matter.
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Key Audit Matters
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How the key audit matter was addressed in our
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audit
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4.4 Provision for Electricity Claims (Refer Note 23 & Note 37(a)(iv) to the Financial Statements)
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The Company is a shareholder of Andhra Pradesh
Gas Power Corporation Limited (APGCL) and has
been consuming power from the corporation in the
past. The Company is also a power consumer with
Southern Power Distribution Company Limited
(SPDCL). There are several power disputes between
APGCL, SPDCL and the Company (both in the capacity
as shareholder of APGCL and as a power consumer
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We have evaluated the following principal audit
procedures in relation to the management's
estimation of the amount payable in this regard.
Our Evaluation of the provision for electricity claims
included the following:
• Obtained an understanding of the filed court
cases and the issues pending in various forums.
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of SPDCL) relating to past several years pending in
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• Assessed the controls established by the
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different forums. The issues under dispute range from
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Company to ensure completeness of information
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tariff rates, levy of wheeling charges, monthly rent
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with respect to litigations.
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consumption, peak hour energy allocation, surplus
allocation charges, amongst others. Both APGCL and
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• Obtained suitable representations from the
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the Company have filed court cases against SPDCL
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management with respect to litigations and the
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and the issues are pending in various forums. The
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forum where they are pending including the
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Company has obtained information that APGCL has
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issues under litigation.
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suspended its operations as on date. Meanwhile an
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• The grounds of dispute taken by Management
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amount of Rs. 8,114.17 Lakhs (Previous Year - Rs.
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were considered to enable us to take a
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6,957.64 Lakhs) [Current Consumption Charges
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judgement.
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Rs.3,663.08 Lakhs (Previous Year - Rs. 3,574.25
Lakhs) and Surcharge Rs.4,451.08 Lakhs (Previous
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• The Company’s representation that APGCL
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Year - Rs. 3,383.39 Lakhs)] appears as arrear
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was permitted to generate power and sell
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outstanding in the electricity bills of SPDCL during the
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independently without depending on SPDCL
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year. Despite the management's best effort to obtain
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and further that the claims from SPDCL is for the
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the details and basis of charge of such unilateral claim
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same supply of power from APGCL for which
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made by SPDCL, the company has not been able to
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due charges have been paid.
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obtain any information from SPDCL and APGCL. The
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• Our conclusions are based on the audit evidence
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management has made an overall assessment of all
such claims. The management has also considered
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obtained up to the date of our auditor's report.
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the fact that some of the claims by SPDCL have been
settled by the Company to APGCL and may not fall
back on the Company. The management has also
reviewed the status of the various disputes pending
in different forums. The management has also taken
note of APGCL's ability to timely defend legal cases
considering that the corporation has suspended
operations. Considering all the above factors, the
management has estimated on the basis of available
data an amount of Rs.1,907.56 Lakhs (Previous Year
- Rs. 1,055.32 Lakhs) as Electricity Payables and such
amount has been provided in the books of account as
at 31 March, 2025. The balance of the disputed claim
is disclosed as contingent liability in Note 37 (a) (iv)
of the financial statements. Considering the significant
degree of judgement applied by the management in
making such assessments and the resultant impact
on the financial statements, we have considered it to
be a key audit matter.
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Our Opinion is not modified in respect of this matter.
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Information Other than the Financial Statements and Auditor’s Report Thereon
5. The Company’s management and Board of Directors are responsible for the preparation of other information.
The other information comprises the information in the Company’s Annual Report, but does not include the
Financial Statements and our auditor’s report thereon.
6. Our opinion on the Financial Statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
7. In connection with our audit of the Financial Statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
8. If based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We hve nothing to report in this regard.
Management’s and Board of Directors’ Responsibilities for the Financial Statements
9. The Company’s management and Board of Directors are responsible for the matters stated in Section 134(5) of
the Act with respect to the preparation of these financial statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows and changes in equity of
the Company in accordance with the accounting principles generally accepted in India, including the Indian
Accounting Standards (“Ind AS”) specified under Section 133 of the Act, read with the Companies (Indian
Accounting Standards) Rules, 2015 as amended.
10. 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 the 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 due to fraud or error.
11. In preparing the Financial Statements, the management and Board of Directors are responsible for assessing
the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management and the board of directors either intends
to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
12. The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the Audit of the Financial Statements
13. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these financial statements.
14. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the company has adequate internal financial controls system with
reference to financial statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management and the board of directors.
• Conclude on the appropriateness of management and the board of director's use of the going concern
basis of accounting in preparation of financial statements and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the 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’s report. However, future events or conditions may cause
the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
15. We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
16. We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
17. From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
18. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government
of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the
matters specified in the paragraph 3 and 4 of the order, to the extent applicable.
19. (A) 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 by the Company, in electronic
mode on servers physically located in India, so far as it appears from our examination of those books except
for the matters stated in the paragraph 19 B (f) below on reporting under Rule 11(g) of the Companies
(Audit and Auditors) Rules, 2014. Management has represented to us that the process of taking daily
backups is in place, however, we are unable to comment on the same due to absence of backup logs.
Refer Note 47 (ii) to the Financial Statements.
(c) The balance sheet, the statement of profit and loss (including other comprehensive income), the statement
of changes in equity and the statement of cash flows 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 the Companies (Indian Accounting Standards) Rules, 2015, as amended.
(e) On the basis of the written representations received from the directors as on 31 March 2025 and taken on
record by the Board of Directors, none of the directors are disqualified as on 31 March 2025 from being
appointed as a director in terms of Section 164(2) of the Act;
(f) The modifications relating to the maintenance of accounts and other matters connected therewith are as
stated in the paragraph 19(A)(b) above on reporting under Section 143(3)(b) of the Act and paragraph
19(B)(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
(g) 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”;
(B) With respect to the other matters to be included in the Auditor’s 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:
a) The Company has disclosed the impact of pending litigations as at 31 March 2025 on its financial position
in its financial statements, wherever applicable - Refer Note No:37 to the Financial Statements.
b) The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.
c) On the basis of the declarations made to us by the management, which is relied upon by us, we report that
there has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company
d) (i) The Management has represented that, to the best of its knowledge and belief (as disclosed in Note
No: 47(xii)(A) to the Financial Statements) no funds have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in
any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by
or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries
(ii) The Management has represented that, to the best of its knowledge and belief (as disclosed in Note
No: 47(xii)(B), to the Financial Statements) no funds have been received by the Company from any
person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other
person(s) or entity(ies) identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on
behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
(iii) Based on the audit procedures that have been considered reasonable and appropriate in the
circumstances, performed by us, nothing has come to our notice that has caused us to believe that the
representations under paragraph 19 (B) (d) (i) and 19 (B) (d) (ii) contain any material mis-statement.
e) The company has not declared or paid any dividend during the year. Hence reporting in respect of
compliance with section 123 of the Companies Act, is not applicable.
f) As stated in Note 45 of the Financial Statements and based on our examination which included test checks,
except for instances mentioned below, the Company, in respect of financial year commencing from 01
April 2024, has used accounting software for maintaining its books of accounts, which have a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the respective software. Further, during the course of our audit, we have not
come across any instance where the audit trail (edit log) facility has been tampered with, other than the
consequential impact of the exception given below:
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Nature of exception noted:
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Details of Exception:
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1. Instances of accounting software(s) for
maintaining books of account which did not
have a feature of recording audit trail (edit log)
facility for all relevant transactions recorded in
the software.
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The software/application used for maintaining
Payroll and Property, Plant and Equipment &
Intangible Assets does not have a feature of
recording audit trail (edit log) facility both at the
application level and database level.
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2. Instances of accounting software(s) for
maintaining books of account for which the
feature of recording audit trail (edit log) facility
was not operated throughout the year for all
relevant transactions recorded in the software.
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We are not able to verify the effective date from
which the audit trail (edit log) facility for the
accounting software “Tally” (used for maintenance
of the accounting records by the Company)
was operated during the year. Further the audit
trail feature was not enabled at the database
level throughout the year to log any direct data
changes, for the accounting software “Tally” used
for maintenance of the accounting records by the
Company.
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3. Instances of preservation of the audit trail
as per the statutory requirements for record
retention.
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In view of reporting requirement under point 2
above, we are unable to verify the preservation of
the audit trail as per the statutory requirements for
record retention.
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(C)With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and according to the information and explanations given to us, the remuneration paid/provided
by the Company to its directors during the current year wherever applicable is in accordance with the provisions
of Section 197 of the Act. The remuneration paid/provided to any director wherever applicable is not in excess
of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other
details under section 197(16) of the Act, which are required to be commented upon by us.
For C S K Prabhu and Co LLP
(formerly C S K Prabhu and Co)
Chartered Accountants
FRN:002485S/S000197
Mahesh Prabhu
Designated Partner
Coimbatore Membership number: 214194
23.05.2025 UDIN: 25214194BMOUPG3206
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