<dhhead>INDPENDENT AUDITORS’ REPORT </dhhead>
To The Members of Shiva Suitings Limited
Report on the Audit of the IND AS Standalone Financial Statements
1. Opinion
We have audited the accompanying standalone Ind AS financial statements
of Shiva Suitings Limited ("the Company"), which comprise the Balance
Sheet as at 31 March 2023, and the Statement of Profit and Loss (including
other comprehensive income), the statement of Cash Flows and the statement of changes in
equity for the year then ended, and notes to the financial statement including a summary
of significant accounting policies and other explanatory information (herein after
referred to as
"standalone Ind AS financial statements")
In our opinion and to the best of our information and according to the
explanation given to us, the aforesaid Ind AS standalone 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 including the Ind
AS, of the state of affairs of the Company as at 31 March 2023, and its Profits
including comprehensive income, its cash flows and the change in equity for the year ended
on that.
2. Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing
(SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities
under those
Standards 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 together with the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the Companies Act, 2013 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 we have
obtained is sufficient and appropriate to provide a basis for our opinion.
3. Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the financial statements of the current period.
There 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.
4. Other Information
The Company’s management and Board of Directors are responsible
for the other information. The other information comprises the information included in the
Company’s annual report, but does not include the standalone financial statements and
our auditors’ report thereon.
Our opinion on the standalone financial statements does not cover the
other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements,
our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated. 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 have nothing to report in
this regard.
5. Management’s Responsibility for the Standalone Ind AS
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 standalone Ind AS 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 relevant rules issued thereunder. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act; for safeguarding the assets of the Company; for preventing and
detecting frauds and other irregularities; selection and application of appropriate
implementation and maintenance of 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 standalone Ind AS financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is 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 either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the
Company’s financial reporting process.
6. Auditors Responsibility for the Audit of the Standalone Ind AS
Financial Statements
Our objectives are to obtain reasonable assurance about whether the
standalone 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 standalone financial statements.
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
standalone 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 with reference to standalone 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.
Conclude on the appropriateness of management’s use of the going
concern basis of accounting 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 standalone 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
standalone financial statements, including the disclosures, and whether the standalone
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
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.
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.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the standalone
financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditors’ 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.
7. Report on Other Legal and Regulatory Requirements
A. As required by Section143(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 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 books.
c. The Standalone IND AS Balance sheet, the standalone statement of
profit and loss including other comprehensive income, the statement of cash flow and the
statement of changes in equity dealt with by this report are in agreement with the books
of account.
d. In our opinion, the aforesaid standalone Ind AS financial statements
comply with the Indian Accounting Standards (Ind As) specified under Section 133 of the
Act, read with relevant rule issued thereunder.
e. On the basis of the written representations received from the
directors as on 31
March, 2023 and taken on record by the Board of Directors, none of the
directors is disqualified as on 31 March 2023 from being appointed as a director in terms
of Section 164(2) of the Act;
f. We have also audited the internal financial controls over financial
reporting
(IFCoFR) of the Company as of 31 March 2023 in conjunction with our
audit of the standalone Ind AS financial statements of the Company for the year ended on
that date and our report dated 26/05/2023 as per Annexure A expressed.
B. With respect to the matter to be included in the Auditors’
Report under Section 197(16) of the Act: In our opinion and according to the
information and explanations given to us, no remuneration is paid by the Company to its
directors during the current year under Section 197 of the Act.
C. With respect to the other matters to be included in the
Auditors’ 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:
i. The Company does not have any pending litigations which may impact
its standalone Ind AS financial statements;
ii. The company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses.
iii. The company has not deposited /transferred following amount which
were required to be transferred to the Investor Education and Protection Fund, the details
are as under :
Nature of the Transactions |
Period |
Amount (in Rs.) |
Debenture Interest |
F.Y. 2006-07 |
8,486/- |
iv. (a) The Management has represented that, to the best of its
knowledge and belief, no funds (which are material either individually or in the
aggregate) 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 or
entity, including foreign entity ("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, whether, directly
or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge
and belief, no funds (which are material either individually or in the aggregate) have
been received by the Company from any person or entity, including foreign entity
("Funding Parties"), with the understanding, whether recorded
in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable
and appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11 (e), as provided
under (a) and (h) above, contain any material misstatement.
v. The Company has not declared or paid any dividend during the year.
D. As required by the Companies (Auditor’s Report) Order, 2020
(the "Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in "Annexure B" a statement on the matters specified in
paragraphs 3 and 4 of the Order.
For V.K. Beswal & Associates
Chartered Accountants
Firm Registration No.: 101083W
Sd/-
CA Kunal Beswal
Partner
Membership No. 131054
UDIN: 23131054BGUXGX1935
Place: Mumbai
Date: 26-05-2023
Annexure B to the Standalone IND AS Independent Auditor’s Report
With reference to the Annexure B referred to in the Independent
Auditors’ Report to the members of the Company on the standalone Ind AS financial
statements for the year ended 31 March 2023, we report the following:
(i) In respect of Property, Plant & Equipment:
The company does not have any Property, Plant & Equipment, and
therefore comments under this clause has not been called for.
(ii) a) As explained to us physical verification of inventory has
been conducted during the year at reasonable intervals by the management.
In our opinion, and as informed by the management there is no
discrepancies of 10% or more in the aggregate for each class of inventory and according to
the information and explanation given to us, the company has maintained proper records of
inventories.
The coverage and procedures adopted by the management for the
verification of the inventory is found to be appropriate.
Y>b) The Company has not been sanctioned any working capital at any
points of time during the year, from banks or financial institutions on the basis of
security of current assets and hence reporting under clause 3(i)(b) of the Order is not
applicable.
(iii) The company has granted unsecured loans to employees during
the year and not made any investment, in respect of which:
a) The Company has not provided any loans (other than loan to
employees) or advances in the nature of loans during the year.
b) In our opinion, the investments made and the terms and
conditions of loans to employees, during the year are, prima facie, not prejudicial to the
Company’s interest.
c) In respect of loans to employees granted by the Company are
interest free, the schedule of repayment of principal has been stipulated and the
repayments of principal amounts are regular as per stipulation.
d) In respect of loans to employees granted by the Company, there
is no overdue amount remaining outstanding as at the balance sheet date.
e) No loan to employees granted by the Company which has fallen due
during the year, has been renewed or extended or fresh loans granted to settle the
overdues of existing loans given to the same parties.
f) The Company has not granted any loans to employees, either
repayable on demand or without specifying any terms or period of repayment during the
year. Hence, reporting under clause 3(iii)(f) is not applicable.
(iv) In our opinion and according to the information and
explanations given to us, the Company has not granted any loans, investments, guarantees
and security to the parties covered under section 185 of the Act. Based on our audit
procedures performed for the purpose of reporting the true and fair view of the financial
statements and according to the information and explanations given by the Management, the
Company has complied with the provisions of section 186 of the Act in respect of the
loans, investments, guarantees and securities provided by it, to the extent applicable to
the Company.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits or amounts which are deemed to be deposits, and
hence the directives issued by the Reserve Bank of India and the provisions of Sections 73
to 76 or any other relevant provisions of the Act and the Companies (Acceptance of
Deposit) Rules, 2015 with regard to the deposits accepted from the public are not
applicable. Further, according to the information and explanations given to us, no order
has been passed by the Company Law Board or the National Company Law Tribunal or the
Reserve Bank of India or any Court or any other Tribunal.
(vi) To the best of our knowledge and according to the information
and explanations given to us, the Central Government has not prescribed the maintenance of
cost records under section 148(1) of the Act. in respect of the business activities
carried on by the company. Accordingly, the provisions of the clause 3 (vi) of the Order
is not applicable to the Company.
(vii) In respect of Statutory Dues: a) According to
information and explanations given to us and on the basis of our examination of the books
of account and records, the Company has been generally regular in depositing undisputed
statutory dues including Goods and Services Tax, Provident Fund, Employees’ State
Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value
added Tax, Cess and any other statutory dues with the appropriate authorities.
b) According to the information and explanation given to us, there
are no dues of Goods and
Services Tax, Provident Fund, Employees’ State Insurance,
Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess
and any other statutory dues with the appropriate authorities outstanding on account of
any dispute.
(viii) There were no transactions relating to previously unrecorded
income that have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961. (43 of 1961).
(ix) a) The Company has not taken any loans or other borrowings or
in the payment of interest thereon to any lender. Hence reporting under clause 3(ix)(a) of
the Order is not applicable.
b) The Company has not been declared wilful defaulter by any bank
or financial institution or other lender.
c) The Company has not taken any term loan during the year and
there are no outstanding term loans at the beginning of the year and hence, reporting
under clause 3(ix)(c) of the Order is not applicable. d) The Company has not raised
any funds on short/long term basis. Hence reporting under this clause 3(ix)(d) is not
applicable.
e) On an overall examination of the financial statements of the
Company, the Company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries, associates or joint ventures.
f) The Company has not raised any loans on the pledge of securities
held in its subsidiaries, joint ventures or associate companies during the year and hence
reporting on clause 3(ix)(f) of the Order is not applicable.
(x) a) According to information and explanations given to us, the
company has not raised moneys during the year by way of initial public offer or further
public offer (including debt instruments). Accordingly, provisions of the clause 3(x)(a)
of the Order is not applicable to the Company.
b) During the year, the Company has not made any preferential
allotment or private placement of shares or convertible debentures (fully or partly or
optionally convertible) under Section 42 and Section 62 of the Companies Act, 2013 and
hence reporting under clause 3(x)(b) of the Order is not applicable.
(xi) a) During the course of our examination of the books and
records of the Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations given to us, we have
neither come across any instance of fraud by the Company or on the Company, noticed or
reported during the year, nor have we been informed of any such case by the Management.
b) No report under sub-section (12) of section 143 of the Companies
Act has been filed in Form ADT- 4 as prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central Government, during the year and upto the date of
this report.
c) According to information and explanations given to us, the
company have not received any whistle blower complaints during the year (and upto the date
of this report), neither any reported to auditor for consideration.
(xii) The Company is not a Nidhi Company and hence reporting under
clause 3 (xii) (a) to (c) of the Order is not applicable.
(xiii) In our opinion and according to the information and
explanations given to us, the Company is in compliance with Section 177 and 188 of the
Companies Act, 2013 where applicable, for all transactions with the related parties and
the details of related party transactions have been disclosed in the standalone financial
statements as required by the applicable accounting standards.
(xiv) a) In our opinion the Company has an adequate internal audit
system commensurate with the size and the nature of its business.
b) We have considered, the internal audit reports issued to the
Company during the year and covering the period upto 31st March, 2023.
(xv) Based upon the audit procedures performed and the information
and explanations given by the management, the company has not entered into any non-cash
transactions with Directors or persons connected with him. Accordingly, the provisions of
clause 3 (xv) of the Order is not applicable to the Company.
(xvi) a) In our opinion, the Company is not required to be
registered under section 45-1A of the Reserve Bank of India Act. 1934. Hence, reporting
under clause 3(xvi)(a) and (b) of the Order is not applicable.
c) In our opinion, the company is not a Core Investment Company
(CIC) (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) and
accordingly reporting under clause 3(xvi)(c) of the Order is not applicable.
d) In our opinion, there is no core investment company within the
Group (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) and
accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
(xvii) The Company has not incurred cash losses during the
financial year covered by our audit and the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors of
the Company during the year and accordingly reporting under clause 3(xviii) of the order
is not applicable to the Company.
(xix) On the basis of the financial ratios, ageing and expected
dates of realisation of financial assets and payment of financial liabilities, other
information accompanying the financial statements and our knowledge of the Board of
Directors and Management plans and based on our examination of the evidence supporting the
assumptions, nothing has come to our attention, which causes us to believe that any
material uncertainty exists as on the date of the audit report indicating that Company is
not capable of meeting its liabilities existing at the date of balance sheet as and when
they fall due within a period of one year from the balance sheet date. We, however, state
that this is not an assurance as to the future viability of the Company. We further state
that our reporting is based on the facts up to the date of the audit report and we neither
give any guarantee nor any assurance that all liabilities falling due within a period of
one year from the balance sheet date, will get discharged by the Company as and when they
fall due.
(xx) The provision for contribution towards Corporate Social
Responsibility (CSR) u/s 135, of the Companies Act are not applicable to the company,
hence reporting under this clause is not applicable.
(xxi) The company doesn’t have any Subsidiary, Associates
& Joint Ventures for which a Separate Consolidated Financial Statement required to be
reported and hence nothing is to be reported under this clause.
For V.K. Beswal & Associates
Chartered Accountants
Firm Registration No.: 101083W
Sd/-
CA Kunal Beswal
Partner
Membership No. 131054
UDIN: 23131054BGUXGX1935
Place: Mumbai
Date: 26-05-2023
Annexure II to the Standalone IND AS Independent Auditor’s Report
1. Independent Auditor’s report on the Internal Financial
Controls with reference to financial statements and its operative effectiveness under
Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the
Act")
In conjunction with our audit of the standalone Ind AS financial
statements of Shiva Suitings Limited ("the Company") as of and for the
year ended 31st March, 2023, we have audited the internal financial controls
over financial reporting (IFCoFR) of the company of as of that date.
2. Management’s Responsibility for Internal Financial
Controls
The Company’s Board of Directors is responsible for establishing
and maintaining internal financial controls based on the criteria being specified by
management. These responsibilities include the design, implementation and maintenance of
adequate internal financial controls with reference to financial statements, that were
operating effectively for ensuring the orderly and efficient conduct of the company’s
business, including adherence to company’s policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Act.
3. Auditors’ Responsibility
Our responsibility is to express an opinion on the Companys IFCoFR
based on our audit. We conducted our audit in accordance with the Standards on Auditing,
issued by the Institute of Chartered Accountants of India (ICAI) and deemed to be
prescribed under section 143(10) of the Act, to the extent applicable to an audit of
IFCoFR, and the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting (the
"Guidance Note") issued by the
ICAI. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate IFCoFR were established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR included
obtaining an understanding of IFCoFR, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Company’s IFCoFR.
4. Meaning of Internal Financial Controls Over Financial
Reporting
A companys IFCoFR is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted
accounting principles including the Accounting Standards. A companys IFCoFR includes
those policies and procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2)provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles including Accounting Standards, and that receipts and
expenditures of the company are being made only in accordance with authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
5. Inherent Limitations of Internal Financial Controls Over
Financial Reporting
Because of the inherent limitations of IFCoFR, including the
possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may occur and not be detected. Also, projections of
any evaluation of the IFCoFR to future periods are subject to the risk that IFCoFR may
become inadequate because of changes in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.
6. Opinion
In our opinion, the Company has, in all material respects, adequate
internal financial controls over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March, 2023,
based on the criteria being specified by management.
For V.K. Beswal & Associates
Chartered Accountants
Firm Registration No.: 101083W
Sd/-
CA Kunal Beswal
Partner
Membership No. 131054
UDIN: 23131054BGUXGX1935
Place: Mumbai
Date: 26-05-2023
+91-9892691696
