To the Members of AKM CREATIONS LIMITED (Formerly known as AKM Lace and Embrotex
Limited)
Report on the Audit of the Financial Statements Opinion
1. We have audited the accompanying financial statements of AKM CREATIONS LIMITED
(Formerly known as AKM Lace and Embrotex Limited) (‘the Company), which comprise
the Balance Sheet as at 31 March 2023, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity
for the year then ended, and notes to the financial statements, including a summary of the
significant accounting policies and other explanatory information.
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 Indian Accounting Standards (‘Ind AS) specified under
section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015
and other accounting principles generally accepted in India, of the state of affairs of
the Company as at 31 March 2023, and its profit/loss (including other comprehensive
income), its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Our responsibilities under those standards are further
described in the Auditors Responsibilities for the Audit of the Standalone 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 we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Key Audit Matter
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 current period. 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.
Information other than the Financial Statements and Auditors Report thereon
5. The Companys Board of Directors are responsible for the other information. The
other information comprises the information included in the Annual Report, 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 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.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
6. The accompanying financial statements have been approved by the Companys Board of
Directors. The Companys Board of Directors are responsible for the matters stated in
section 134(5) of the Act with respect to the preparation and presentation of these
financial statements that give a true and fair view of the financial position, financial
performance including other comprehensive income, changes in equity and cash flows of the
Company in accordance with the Ind AS specified under section 133 of the Act and other
accounting principles generally accepted in India. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding of the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
7. In preparing the financial statements, the Board of Directors are 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
the Board of Directors either intend to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
8. Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
9. 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
Standards on Auditing 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.
10. As part of an audit in accordance with Standards on Auditing, specified under
section 143(10) of the Act 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 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;
• Conclude on the appropriateness of Board of Directors 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 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 financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation;
11. 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.
12. 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.
Other Matter
13. The financial statements of the Company for the year ended 31 March 2022 were
audited by the predecessor auditor, V.N.PUROHIT & Co, who have expressed opinion on
those standalone financial statements vide their audit report dated 30th May
2022.
Report on Other Legal and Regulatory Requirements
14. Based on our audit, we report that the Company has not paid or provided for any
managerial remuneration during the year. Accordingly, reporting under section 197(16) of
the Act is not applicable.
15. As required by the Companies (Auditors Report) Order, 2020 (‘the Order)
issued by the Central Government of India in terms of section 143(11) of the Act we give
in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
16. Further to our comments in Annexure A, as required by section 143(3) of the Act
based on our audit, we report, to the extent applicable, 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 of the
accompanying financial statements;
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 financial statements dealt with by this report are in agreement with the books
of account;
d) in our opinion, the aforesaid financial statements comply with Ind AS specified
under section 133 of the Act;
e) On the basis of the written representations received from the directors 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) With respect to the adequacy of the internal financial controls with reference to
financial statements of the Company as on 31 March 2023 and the operating effectiveness of
such controls, refer to our separate Report in Annexure B wherein we have expressed an
unmodified opinion; 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 (as amended), 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 litigation which would impact its financial
position as at 31 March 2023;
ii. the Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses as at 31 March 2023;
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company during the year ended 31 March 2023;
iv.
a. The management has represented that, to the best of its knowledge and belief, no
funds have been advanced or loaned or invested (either from borrowed funds or securities
premium or any other sources or kind of funds) by the Company to or in any person or
entity, including foreign entities (‘the 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 (‘the Ultimate Beneficiaries) or provide
any guarantee, security or the like on behalf the Ultimate Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief, no
funds have been received by the Company from any person or entity, including foreign
entities (‘the 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; and
c. Based on such audit procedures performed as considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
management representations under sub-clauses (a) and (b) above contain any material
misstatement.
v. The Company has not declared or paid any dividend during the year ended 31 March
2023
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires all companies
which use accounting software for maintaining their books of account, to use such an
accounting software which has a feature of audit trail, with effect from the financial
year beginning on 1 April 2023 and accordingly, reporting under Rule 11(g) of Companies
(Audit and Auditors) Rules, 2014 (as amended) is not applicable for the current financial
year.
Appendix A:
The below is the list of scenarios for reporting under SA 720(Revised), "The
Auditors Responsibilities Relating to Other Information.
The Companys Board of Directors are responsible for the other information. The other
information comprises the information included in the Annual Report, but does not include
the financial statements and our auditors report thereon. The Annual Report is expected
to be made available to us after the date of this auditors report.
Our opinion on the financial statements does not cover the other information and we
will 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 identified above when it becomes available 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.
The Companys Board of Directors are responsible for the other information. The other
information comprises the information included in the Directors report but does not
include the standalone financial statements and our auditors report thereon, which we
obtained prior to the date of this auditors report, and the Directors report, which is
expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information and we do
not and will 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 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.
If, based on the work we have performed on the other information that we obtained prior
to the date of this auditors report, 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.
When we read the Directors report, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with governance.
| For, RKJS & Co LLP |
| Chartered Accountants Sd/- |
| Narendra Kumar Pati Membership No. 056113 |
| UDIN No.: |
| Place: Mumbai |
| Date: 30th May 2023 |
+91-9892691696
