DASS KHANNA

CI]ARTEREDACCOUNTANTS

& co.

r.la. No. 240249i)

R X X' 2 8 ] 5 , G U R D I V
NA(JAR,
I u D uI A N A

l,1l 001

| !a I I dnislhtrtrD:.o!ya;roo..or

P A N : A A B I ' D5 ] 5 ] ( i

INDTPENDENT
AUDITOR,S
REVIEWREPORT

I he Boardof Direclors,
Co.Ltd.,
SELManufacturing
lntroduction
statementof unaLlditedstandalon.financlalresLhsol Sr-L
We have reviewedthe accompanying
(the
company)
for the qLlarterendedlLne 30, 2016("tha Stdtcm.nf)
Company
Limited
Manufacturing
Oblig:lllon
33 of the SID (Lisl]ng
of Regulatlon
preparedby the companypursuantto the requlrements
daLcd
2015readwith SEBICircuar no CLR/CfD/FAC/6212016
Regulations,
Requirements)
and Disclosure
be1
ard
has
Management
of
the
Company's
is
the
responsibllity
5'h July, 2016. This statement
lifan.:dl
on
thcsc
stdndalone
to
issue
a
report
lty is
Our responslbi
approvedby the Boardof Directors.
basedon our review.
resuLts

scopeof Review
(SRt)2410,"Revew of
Standardon RevlewEngagements
our Teviewin accordance
We conductecl
Eniily",issuedby lhc
Auditor
of
the
InterimFinancialInformationPerformed by the Independent
plan
and performthe revll.w
Accountants
of ndia-Thlsstandardrequiresthat we
lnstltuteof Chartered
arefree of materialm ssialmcnt
assurance
asto whetherthe financialstaternents
to obtainrnoderate
personnel
app icd t.)
and
anayLlcalprocedures
primarily
of
company
to
inquiries
is
limited
A review
performed
an
audl and
We
have
not
than an audlt
financialdata and thus providelessassurance
y, we do not expressan audltopinlon.
according
conclusion
Basedon our reviewconductedas above,nothinghascomclo our attentlonthat causcsus to bc cvc
financialresultsread wth notesthercon'
statementof unauditedstandalone
that the accornpanying
preparedin accordancewith lndian AccountingStandardsas specifledunder scctior 13:l of thc
(Accounts)
Rules,2014 and other rccognircdaccounlfg
Act, 2013 read wlth Companies
Companies
thc informationrcquircdto bc
practlcesand policiesgenerallyacceptedln India,has not disclosed
dlscosedin terms of Regulatlon33 of the SEU (LlstingOblgatlonsand lllscosLric1.q\rr(,rrrtrlrl
dated 5th Julv,2016lnc udingLlrc
Regulations,
2015readwith StB Circuarna. CIR/CFD/FAcl62/2o16
anymaterialmisstatcment.
or that it contains
nrannerin whichlt is to be dlsclosed,
Emphasisof Matter
We drawaltentionto the followingmattersi
that in the opinionof the management
1. Note No. 2 of the interimfinancia resultsdescribes
lossesdurlngthe quarterended
incurringsubstantial
despitesub optlmurncapacityutlllzation,
lune 30'r',2016 and substantialreductionin net worth as al Jurc 3oih,2016,thc unaudt.d
in ,'
havebeenpreparedon a golngconcernbagisin viewol matrc15
standalone
financialTesults
-.sp.cl
glve
riseto nraterialunccdaiftyin
explalned
in the saidnote.However,thesesituations
of cornpany's
abilltyto continueasgoingconcernwhlchis part dependenton succcssluoulco,n(l
with the CDRlendersand company'sabilityto gencratcsufficicnlflrndsto
of the dlscussions
its
operations
andfulfl Lrepaymentobligatlons.
slrpport

to Rs.242.62
croresandMAI Credlt
deferred
taxassetamounting
2. Thecompany
hasrecognized
p
r
o
b r h1r ) t h i ] l s u f f l . . ' : i t
2
0
1
5
c
o
n
s
l
d
F
r
l
n
g
c
r
o
r
e
s
u
p
t
o
3
0
r
'
J
u
n
e
,
E n t i t l e m eonft R s . 5 5 . 3 4

,{;9ry

periodagainstwhich 5uchdeferredtax
duringspeclfied
taxableincomewill be available
asgoingconcerf
Thecomptnyabilityto contlnue
canbeadjusted
CreditEntitlement
asset/MAT
statlrsof lhc
in para(1)aboveln casethe goingconcern
on factorsas discussed
is dependent
wlll
require
to
till
date
recognlzed
Entitlement
Cfedit
taxasset/MAT
issuspect,
deferred
company
as on lune 30, 2016amountingto Rs420'63
3. No provisionhasbeen madafor TradeReceivables
'lalfi;
for morethan 180daysfrom the due date floweverthe managem'n1
croresoutstanding
made
therelof'
and no provlslonis requiredto be
are recoverable
that the saidreceivables
4. The level of inventoriesmaintainedby the companyis high lhis rnay includeunidentlfied
slow/nonmoving and obsoleteitems of Inventoriesying with th companyfor which no
provisionhasbeenmade.
5. search& seizllreactionu/s 132(1)of the IncomeTaxAct, 1961was carrledon the company,its
duringthe financialyear 20:13:t4Aqr'ssments
promotersand some other companies/entities
Year2008-09,2009-10,2012 13and2014 15 Th're is no
havebeencompletedfor Assessment
for the saidycars Pendng
of asscssments
arlsingon accountof cornpletion
tax Liabllity
additional
lry
ncccssary
provision
has
been
considered
years,
no
assessment
proceedings
for the remaining
the Companyin this regard.
js not modifjedin respectof the mattersreportedin para(1)to (5) oi Emphirsls
Our concluslon
ot malteTs.

OtherMatters
n alrel>:
lo theioLlowlng
Wedrdwattention
ReferNote No-4 to the interimfinancialresultswhlchsiatesthat the companyhasadoptedrd
y thc statementhas
from April 1't, 2016 and according
AS for the financialyear comrnencing
beenpreparedin compiancewiih lnd A57 . We have not reviewed the comparativefigures lncludlngthc rcconcl!atlonol loldl
we do not
incomefor the quarterendedon lune 30th2015 anclaccordingly
comprehensive
quarter
Junc
10"' 20'!5
cndcd
for
the
on the resujtsin the statement
expressany conclusion
Thesefigureshavebeenfurnishedby the management.
is not modifiedin respectof the mattersreportedin para(1) and (2) ot othcr
Our conclusion
matterS,
For DASSKHANNA& CO,
CharteredAccountants
FirmRe8.No.000402N

1)

/K^I"L
Place:ludhiana
Date:12.09,2016

(CARakeshSor
M.No.:083142

DASS KHANNA& CO.

ACCOUNTANTS
CI]ARTERED

'rele.

No- 2402497
B X X 7 8 ] 5 , G I ] R D I :NVA C A R ,
LlrDrilAN/\ 141 001

r 0ail: dr55lhJnnJ..iyrhod,.,
ii
lr\Nr /i^lil ) rlSl

AUDITOR'SREVIEWREPORT
INDEPENDENT
To
The Boardof Directors,
Co.Ltd.,
SELManufacturing
Introduction
We have reviewedthe accompanyingstatementof consolidatedunauditcdfinancia resuls of 5lL
referredto as "the Ho dingcompany")and its subsidiaries
Manufacturing
CompanyLirnited(hereinafter
(the Ho ding Companyand its subsidiaries
togetherreferredio as "the Group")for the quarlerended
June30, 2016 ("the Statement")preparedby the companypursuantto the fequirernentof Reguatlon
Reguations,2015readwjth SEBIClrcular
Requirements)
33 of the SEBI(ListingObligationand Disclosure
of Lheconrli Jr)'i
dated 5ihJlrly,2016.This statementis the responsibilliy
no. clR/cFD/FAc/62/2a16
is Loissuea reporLo;r
Our responsiblLity
and hasbeenapprovedby the Boardof Directors.
Management
r
'
.
i
^
w
.
r
o
r
q
o
l
i
d
d
i
e
l
d
r
n
"
n
r
.
a
l
r
e
q
l
s
b
e
d
o
r
o
u
r
rhe)e

entllies:
results
of following
includes
thefinancial
TheStatement
Cornpany)
Co.ttd. (Holding
1. SELManufacturing
cornpany)
Limited(Subsidia.y
2. SELTextiles
(Subsidiary
Company)
3. SELAviation
PrivateLimited
(subsidiary
Firm)
4. SEExports
(subsjdiary
company)
5. SELTextie corporation

s.ope of Review
(SRt)2410,'Rcvicrlr
ot
on ReviewEngagements
Standard
we conducted
our reviewin accordance
ssucd
b,'
t
I
Auditor
of
the
Lntity',
Perfonnedby the Independent
InterimFinancial,nformation
requires
that we p an andperformthe rcview
of India.Thisstandard
of Chartered
Accounlants
Institute
rnisstatcineni.
statcments
areJreeof materinl
whether
the
financial
assurance
asto
to obtalnmoderate
pfocedurcs
appiled1.o
and analytical
of companypersonnel
A reviewis limitedprimarilyto lnquiries
an audltand
than an audit.We havenot performed
financial
dataand thus providelessassurance
y, we do not express
an auditopinion.We did not reviewihe financiarosuts ol ovcrsl].:
according
company
andltsfoursubsidiaries.
branchof the holding
Conclusion
usto bc r.v!
as above,nothinghascometo our attentlonthat causes
Basedon our reviewconducted
resultsreadwith nolcsLhcrcon,
consoidatedfinancial
statement
of unaudited
that the accompanying
as specifiedundersection131 uf tir.
preparedin accordance
with IndianAccounting
Standards
(Accounts)
accounlfii
Rues,2014and other recognired
Act,2013readwith Companies
Companies
ihe informatlon
requlredto be
practices
accepted
in India,hasnot disclosed
and policiesgenerally
and DiscosurcRequirementsl
in tenns of Reguation33 of the SEBI(ListingObligations
disclosed
6 dated5'" July,2016incudlngiie
with SFBICircular
na. CIR/CFD/FAC/62/2O1
Reguations,2o:L5read
anymat-^rial
rnissiatement.
mannerin whichit isto bedisclosed,
or that it contains

of Matter
Emphasis
Wedrawattention
to thefollowing
rnatters:
that in the opinionof thc management
1. NoteNo. 2 of the interimfinancialresultsdescribes
substantial
losses
duringthe quartcrcndcd
utilization,
incurring
despitesuboptimumcapacity
reduction
in net worthas at lune 30t',2016of lhe holdng as
lLrne3oth,2016and substantial
the unauditcd
consolldatcd
finalc:n re5!ls havirbir.r
we las one of its subsidiary
company,
going
prepared
in lh. saidnote lo!"'.u.,.
on a
concern
basisin viewof mattersfullYexplaincd
giveriseto materialuncertaintY
abilltyto
in respectof the saidcompanies'
thesesituations
part
going
on
successful
outcome
of
the
dlscussions
concerns
which
are
dependent
continue
as
abilityto genemtesufficientfundsto supportihcif
with the CDRlendersand companies'
and
fulfill
repayment
obligations.
operations
to Rs.233.93croresand MATcredit
deferredtax assetamounting
2. TheGrouphasrecognized
probability
lhat suffclenl
of Rs.64.55croresupto 30ihJune,2016considering
Entitlement
period
againstwhlch suchdcferr.d t;ix
taxableincomewil be availableduringspecified
i,l iht
Theabiity to continucasgoin{lconcern
CreditEntitlement
canbe adjusted.
asset/MAT
para
(1)
factors
discuss.d
in
above.
is depend-.nt
on
cornpany
holdingandone of its subsidiary
Crcdl
issuspect,
deferred
taxasset/lvlAT
statusof the saidcompanies
n casethe goingconcern
recognized
ti I datewiLlrequireto be reversed.
Entitlernent
to Rs590.26croresortstandng
amounting
hasbeenmadefor TradeReceivables
3. No provision
for morethan 180 daysfrom the due dateas on Junc30, 2016.Howevefth. managcr.tn
."d
r'
.ob
aTeTecovefab
e d'ld opor'orIaq
claimsthat the said receivables
theretbre.
ls
subsidiary
by the Holding
Company
andlts onc domeslic
Theleve of inventories
maintained
ying
and
obsoete
items
of
Inventories
unidentified
slow/
non
moving
high.Thismayinclude
hasbeenrnade.
companles
for whichno provision
withthe respective
actionu/s 132(1)of the lncomeTaxAct, 1961wns carricdon the holdlng
5. Search& Seizure
ycaf
duringthe linancial
its promoters
and someothrrelatedcompanies/entities
Company,
havebeencompletedfor thc compel"'blockp.,rlo.r
2013-14.Assessments
of subsidiaries
compctedior Asscssnt.ni
assessments
havebe-an
whereas
in the caseof the Holding
Company,
Year2008-09,
20A9-L0,20L2-13
and 201415. No additionatax iabiity aroseon .ccuL L ur
for the remaining
for the said years.Pendingproceedings
completionof assessments
years,no provision
ln thls
necessary
by thc holdingcompany
hasbeenconsidered
assessment
regard.
is not modified
in respect
ofthe mattersreportedin para(1)io {5)of Lmphasis
0ur conclusion
of matters.
Other Matters
to the followingmatters:
Wedrawattention
resuts whichstatesthatthe Grouphasadoplednd AS
1. ReferNoteNo.3 to the interimfinancial
year
fromApril1", 2016andaccordingly
thc statemenlhis b.cn
for the financial commencing
p'Fp.redin .olrpl ance$ i" lrd AS.

iatlon oi lola
figures includinglhe reconcl
2. We have not reviewedthe comparative
incomefor the quarterendedon JLrne30'" 2015and accordjngly
we do rol
comprehensive
expressanvconcusionontheresultsinthestatementforthcquartcrcncledluncao'70
Thesefigureshavebeenfurnishedby the management.

3.WedidnotreviewtheinierimfinanciaIresultsoffoursubs;diariesinc|udedintheconsoI
financialresultswhoseinterimflnancialresultsreflecttotal revenuesof Rs129 11 'roresfor the
the group'sshare
alsoinclude
results
financial
quarterended3othlune,2016Theconsolidated
of netlossof Rs73.60croresfor the quarterended30'"lune,2016
is not modifiedin respectof the mattersreportedin para(1) to (3) of Oiher
Our conclusion
Matters.
For DASSKHANNA& CO.
CharteredAccountants
FirmReg.No.

/R.,r"rr
Ludhiana
Place:
Date:12.09.2016

(CARa
M.No.:083142