To,
The Members
ADINATH TEXTILES LIMITED
Report on the Ind AS Financial Statements Opinion
We have audited the accompanying financial statements of ADINATH TEXTILES
LIMITED("the Company"), which comprise the Balance Sheet as at 31stMarch, 2023,
and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow
Statement and the Statement of Changes in Equity for the year then ended and a summary of
significant accounting policies and other explanatory information (hereinafter referred to
as "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
Companies Act 2013("the Act") in the manner so required and give a true and fair
view in conformity with the Ind AS and accounting principles generally accepted in India,
of the state of affairs of the Company as at 31st March, 2023 and its net profit, its cash
flows, total comprehensive income and the changes in equity for the year ended on that
date.
Basis for Opinion
We conducted our audit of the financial statement in accordance with Standard on
Auditing (SAs) specified under section 143(10) of Act. Our responsibilities under those
Standards are further described in Auditors Responsibilities for the Audit of Financial
Statements section of our report. We are independent of the Company in accordance with the
Code of Ethics issued by Institute of Chartered Accountants of India (ICAI) together with
the Independence requirement that are relevant to our audit of the Financial Statement
under the provisions of the Act and the Rule made there under , and we have Fulfilled our
other ethical responsibilities. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion on the financial
statement.
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. We have
determined that there are no key audit matters to communicate in our report.
Information Other than the Financial Statements and
Auditors Report thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information included in the Management Discussion and Analysis,
Boards Report including Annexure to Boards Report, Business Responsibility Report,
Corporate Governance and Shareholders Information, but does not include the financial
statements and our auditors report thereon.
Our opinion on the 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 financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our 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.
Responsibilities of Management and Those Charged
with Governance for Financial Statement
The Companys Board of Directors is responsible for the matter stated in Section 134(5)
of the Companies Act, 2013 ("the Act") with respect to preparation of these
financial statements that give a true and fair view of the financial position, financial
performance, 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) prescribed under Section 133 of the Act read with the relevant rules
issued there under. 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 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
Companys 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.
The Board of Directors are responsible for overseeing the Companys financial reporting
process.
Auditors Responsibility for the audit of the Financial Statement
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 auditors 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 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, mis- representations, or the override of internal control.
? Obtain an understanding of internal financial controls 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 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 managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors 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
auditors 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.
? Materiality is the Magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in:
a) Planning the scope of our audit work and in evaluating the results of our work; and
b) To evaluate the effect of any identified misstatements in the financial statements.
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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors 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.
2. 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 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 appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, Cash Flow Statement 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 Ind AS financial statements comply with the Indian
Accounting Standards specified under section 133 of the Companies Act, 2013, read with
relevant rules issued there under.
e) On the basis of written representations received from the directors as on March 31,
2023, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023, from being appointed as a director in terms of Section 164 (2) of
the Companies Act, 2013;
f) 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"; and
g) 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 has disclosed the impact of pending litigations on its financial
position in its financial statement. Refer clause vii(a) of the annexure- A to the audit
report.
i i. The Company did not have any long term c on tracts including derivative contracts
for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company. 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
(b) above, contain any material misstatement.
V. The company has not declared or paid any dividend during the year therefore the
provisions of sec.123 of the Companies Act 2013 are not applicable.
VI. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining
books of account using accounting software which has a feature of recording audit trail
(edit log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
For Kamboj Malhotra & Associates Chartered Accountants Firms Reg. No. 015848N
|
Sd/- |
| Place |
: Ludhiana CA Amarjit Kamboj |
| Date |
: 29 May, 2023 Partner |
|
Membership No. 082152 |
|
UDIN : 23082152BGZHAS7298 |
ANNEXURE- A TO THE INDEPENDENT AUDITORS- REPORT
The Annexure referred to in our Independent Auditors Report to the members of ADINATH
TEXTILES LIMITED on the Ind AS financial statements for the year ended on 31st March,
2023. We report that:
(i) In respect of the Companys Property Plant and Equipment:
(a) The Company is maintaining proper records showing full particulars including
quantitative details and situation of Property, Plant and Equipment and Intangible assets.
(b) As explained to us, all the fixed assets have not been physically verified by the
management during the year, but the Company has a regular program of physical verification
of its fixed assets by which fixed assets are verified in a phased manner over a period of
three years. In our opinion, this periodicity of physical verification is reasonable
having regard to the size of the Company and nature of its assets. According to the
information and explanations given to us, no material discrepancies were noticed on such
verification.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties are
held in the name of the Company.
(d) The Company has not revalued its Property, Plant and Equipment.
(e) The Company has not hold any benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made t her eu n d er . Hence, the
reporting under clause
3 (i)(e) of th e Order is not applicable.
(ii) (a) According to the information and explanations given to us, the physical
verification of inventories has been conducted at reasonable interval by the management.
As explained to us, no material discrepancies were noticed on physical verification of
inventories carried out by the management as compared to the book records.
(b) The Company has not been sanctioned working capital limits in excess of F5 crore,
in aggregate, 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(ii)(b) of
the Order is not applicable.
(iii) During the year the company has not made any investments in, provided any
guarantee or security or granted any loans or advances in the nature of loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or any other parties.
Hence, reporting under clause 3(iii) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the
Company has complied with the requirements of the section 186 of the Companies Act, 2013
pursuant to investment made and the company has not granted loans to directors or to the
person in whom directors are interested. Therefore the provisions of Section 185 of the
Companies Act, 2013 are not applicable to the company.
(v) The Company has not accepted deposits from the public within the meaning of
provisions of sections 73 to 76 or any other relevant provisions of the Companies Act,
2013 and the rules framed there under. 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.
(vi) As per information & explanations given by the management, maintenance of cost
records is not required to be maintained as required under sub- section (1) of section 148
of the companies Act, 2013 read with Rule 3 of Companies (Cost Records and Audit)
Amendment Rules, 2014.
(vii) (a) According to the information and explanations given to us and the books and
records examined by us, we state that the company is regular in depositing undisputed
statutory dues including income tax, provident fund, employees state insurance, service
tax and other statutory dues to the appropriate authorities.
The details of the undisputed statutory dues to the extent of the arrears of
outstanding statutory dues as on last day of financial year outstanding for a period of
more than six months from the date they became payable :
| Name of The Statutory of Dues |
Amount in (Rs.) |
| Sales Tax |
22,77,956.74 |
| Entry Tax |
2,37,798.17 |
| Interest on PF/ESI/ SALE TAX |
7,65,207 |
(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 been defaulted in repayment of loans or other borrowings
or in the payment of interest thereon to any lender.
(b) The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
(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 term basis. Hence, reporting under
clause 3(ix)(d) of the Order 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.
(f) The Company has not raised any loans during the year and hence reporting on clause
3(ix)(f) of the Order is not applicable.
(x) (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) of the Order is not applicable.
(b) During the year, the Company has not made any preferential allotment or private
placement of s ha re s or c on vertible debentures (fully or partly or optionally) and
hence reporting under clause 3(x)(b) of the Order is not applicable.
(xi) (a) No fraud by the Company and no material fraud on the Company has been noticed
or reported during the year.
(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) No whistle blower complaints has been received by the Company during the year.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the
Order is not applicable.
(xiii) In our opinion, the Company is in compliance with Section 177 and 188 of the
Companies Act, 2013 with respect to applicable transactions with the related parties and
the details of related party transactions have been disclosed in the 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 for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
(xv) In our opinion during the year the Company has not entered into any non-cash
transactions with its Directors or persons connected with its directors. and hence
paragraph 3(xv) are not applicable to the Company.
(xvi) (a) In our opinion, the Company is not required to be registered under section
45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a)of
the Order is not applicable.
(b) According to the information and explanations given to us, the Company has not
conducted any Non-Banking Financial or Housing Finance activities. Hence, reporting under
clause 3(xvi)(b)of the Order is not applicable.
(c) In our opinion, The Company is not a Core Investment Company as defined in the
regulations made by Reserve Bank of India.
Hence, reporting under clause 3(xvi)(c)of the Order is not applicable.
(d) The Group has more than one CIC as part of the group. There are five CIC forming
part of the group.
(xvii) The Company has not incurred any cash losses in the immediately preceding
financial year.
(xviii)There has been no resignation of the statutory auditors of the Company during
the year.
(xix) On the basis of the financial ratios, ageing and expected dates of realization 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) According to the information and explanations given to us, the provisions of
section 135 of the Act are not applicable to the Company. Hence, the provisions of
paragraph (xx)(a) to (b) of the Order are not applicable to the Company.
(xxi) The reporting under clause 3(xxi) of the Order is not applicable in respect of
audit of standalone financial statements. Accordingly, no comment in respect of the said
clause has been included in the report.
For Kamboj Malhotra & Associates Chartered Accountants Firms Reg. No. 015848N
| Place |
Ludhiana |
CA Amarjit Kamboj |
| Date |
29 May, 2023 |
Partner |
|
|
Membership No. 082152 |
|
|
UDIN : 23082152BGZHAS7298 |
A n nexure B to the Independent Auditors Report
(Referred to in paragraph 1(g) under "Report on
o t her legal and regulatory requirements" of our re port of even date)
Report on the Internal Financial Controls under Clause (i) of sub section 3 of Section
143 of the Companies Act, 2013 (the Act)
We were engaged to audit the internal financial controls over financial reporting of ADINATH
TEXTILES
LIMITED ("the Company") as of March 31, 2023 in conjunction with our
audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining
internal financial controls based on the internal control over financial reporting
criteria established by the Company considering the
essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the
Guidance Note) issued by the Institute of Chartered Accountants of India(the
ICAI). These responsibilities include the design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuring the
orderly and efficient conduct of the companys business, including adherence to companys
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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys Internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Standards on Auditing, issued by the ICAI and deemed to be prescribed under
section 143(10) of the Act, to the extent applicable to an audit of Internal financial
controls over financial reporting and 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 Internal
financial controls over financial reporting 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 internal financial controls systems on financial reporting and their operating
effectiveness. Our audit of Internal financial controls over financial reporting included
obtaining an understanding of Internal financial controls over financial reporting,
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 auditors judgment, including the assessment of the risks of
material misstatement of the Ind AS 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 Companys internal financial controls system
over financial reporting of the company.
Meaning of Internal Financial Controls over
Financial Reporting
A companys internal financial controls over financial reporting 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. A companys Internal financial controls over financial
reporting 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, and that receipts and
expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and(3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls
over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
control, material misstatements due to error or fraud may occur and may not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk, that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March, 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial reporting issued by the Institute of Chartered
Accountants of India.
For Kamboj Malhotra & Associates Chartered Accountants Firms Reg. No. 015848N
| Place : Ludhiana |
CA Amarjit Kamboj |
| Date : 29 May, 2023 |
Partnerr |
|
Membership No. 082152 |
|
UDIN : 23082152BGZHAS7298 |
+91-9892691696
