TO THE MEMBERS, BETEX INDIA LIMITED Surat, Gujarat, India
Opinion
We have audited the standalone financial statements of BETEX INDIA LIMITED ("the
Company"), which comprise the balance sheet as at 31st March 2023, and the statement
of Profit and Loss, (statement of changes in equity) and statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information (hereinafter referred to as
"Standalone Financial Statements").
In our opinion and to the best of our information and according to the explanations
given to us , the aforesaid 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, of the state of affairs of the Company
as at March 31, 2023, and loss, (changes in equity) and its cash flows for the year ended
on that date
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 Auditors 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 there
under, 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 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. 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.The company has not created provision for Interest amounting to
Rs 4,14,156/- on delayed payment of MSME dues resulting in overstatement of profit.
Information other than the Financial Statements and Auditorfs Report thereon
The Companys Board of Directors is 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.
Managementfs Responsibility for the Standalone Financial Statements
The Companys 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 financial statements that give a true and fair view of the financial
position, financial performance, total comprehensive income, change in equity and cash
flows of the Company in accordance with the accounting principles generally accepted in
India, including the Ind AS specified under Section 133 of the Act, read with rule 7 of
companies (Accounts) Rules, 2014 and the companies(Indian Accounting Standards) Rules
2015, as amended.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding 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.
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 respective Board of Directors are also responsible for
overseeing the Companys financial reporting process.
Auditorfs Responsibilities for the Audit of the Financial Statements
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.
As part of an audit in accordance with Standards on Auditing, 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 explaining 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 estimate 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 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.
Materiality is the magnitude of the 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 (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) 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 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
We Report that:
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 &
4 of the order, to the extent applicable.
As required by section 143(3) of the Act, based on our audit 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss including
Other Comprehensive Income, the Standalone Statement of Changes in Equity and the
Standalone Cash Flow Statement dealt with by this Report are in agreement with the books
of account;
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS
specified under section 133 of the Act.
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
Act
f) With respect to the adequacy of the internal financial control over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in "Annexure B";
g) With respect to 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 standalone financial statements.
(ii) Based on the assessment made by the company, there are no material foreseeable
losses on its long-term contracts that may require any provisioning.
(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 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 persons
or entities, 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 by or on behalf of the Company or
any of such subsidiaries ("Ultimate Beneficiaries") or provide any guarantee,
security or the like to or on behalf of 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 persons or entities, 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 persons or entities identified in any manner whatsoever ("Ultimate
Beneficiaries") by or on behalf of the Funding Party or provide any guarantee,
security or the like from or on behalf of the Ultimate Beneficiaries.
c) Based on such audit procedures as 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 (iv)(a) and (iv)(b) contain any material mis-statement.
v) The company has not paid/declared any dividend during the years and hence compliance
of section 123 of the Act is not applicable.
FOR M/s C.P JARIA & CO. CHARTERED ACCOUNTANTS,
(Firmfs Registration No: 104058W)
CA. PANKAJ JAIN
Place: Surat Partner
Date: May 30, 2023
M. No. 112020
UDIN: 23112020BGUNCG8672
ANNEXURE A TO THE INDEPENDENT AUDITORSf REPORT
BETEX INDIA LIMITED
The Annexure referred to in our report to the members of BETEX INDIA LIMITED for
the year Ended on March 31, 2023, We report that:
On the basis of the information and explanation given to us during the course of our
audit, we report that:
i. (a) A. The company is maintaining proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment;
B. The company has no intangible assets in their books of account. Hence Clause i(a)(B)
of Companies (Auditors Report) Order, 2020 is not applicable.
(b) According to the explanation and information provided by the management Property,
Plant and Equipment have been physically verified by them at reasonable intervals. No
material discrepancies were noticed on such verification by the management.
(c) The title deeds of all the immovable properties disclosed in the financial
statements are held in the name of the company.
(d) The Company has not revalued its Property, Plant and Equipment during the year.
Hence Clause (i)(d) of Companies
(Auditors Report) Order, 2020 is not applicable.
(e) According to the information and explanations given to us, there are no proceedings
initiated or are pending against the company for holding any benami property under the
Benami Transactions(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder,
Accordingly, Clause (i)(e) of Companies (Auditors Report) Order, 2020 is not applicable.
ii. (a) According to the explanation given by the management, Physical verification of
inventory has been conducted at reasonable intervals by them and in our opinion, the
coverage and procedure of such verification by the management is appropriate & no
significant discrepancies were noticed in the physical verification report.
(b) The company has not been sanctioned any working capital limit in excess of Rs. 5.00
Crore during any point of time of the year. Accordingly, Clause ii (b) of the order is not
applicable thereto.
iii. During the year the company has not 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 clause iii (a) to (f) of the
order is not applicable thereto
iv. In our opinion and according to the information and explanations given to us, the
Company has complied with the provision of section 185 and 186 of the Act, with respect to
the loans granted, guarantees provided and investment made. The Company has not provided
any security in connection with a loan to any other body corporate or person and
accordingly, compliance under Sections 185 and 186 of the Act in respect of providing
securities is not applicable to the Company.
v. The Company has not accepted any deposits or any amount which are deemed to be
deposits, during the year and does not have any unclaimed deposits as at March 31, 2023 as
per the directives issued by the Reserve Bank of India and the provisions of sections 73
to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed
there under and therefore, Clause 3 (v) of the Companies (Auditors Report) Order is not
applicable.
vi. According to the information and explanation given to us, the company is
maintaining cost records under section 148(1) of the Act. We have, however, not made a
detailed examination of the cost records with a view to determine whether they are
accurate or complete.
vii. a) According to the information and explanation given to us and on the basis of
our examination of the records of the Company, amount deducted/accrued in the books of
account in respect of undisputed statutory due including provident fund, employees state
insurance, income tax, goods and service tax, sales tax, service tax, duty of custom duty,
duty of excise, value added tax, cess, Goods and Service tax and other material statutory
dues have been regularly deposited during the year by the Company with the appropriate
authorities.
According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, income-tax, goods and service tax, sales tax,
service tax, duty of custom, duty of excise, cess, and other material statutory due were
in arrears as at 31/03/2023 for a period of more than six months from the date they became
payable
(b) According to the information and explanation given to us, there are no dues of
goods and service tax, sales tax or wealth tax or service tax or duty of customs or value
added tax or cess, which have not been deposited with the appropriate authorities on
account of any dispute. However, based on the audit procedure and on the information and
explanations given by the management,
viii. According to information and explanation given to us and on the basis of
examination of records, there are no transactions which are not recorded in books of
accounts and have been disclosed as income during the year as tax assessment under I.T
Act, 1961.
ix. (a) Based on the audit procedures and on the information and explanations given by
the management, we are of the opinion, the company has not defaulted in repayment of dues
to financial institutions, banks etc.
(b) On the basis of the information or explanation provided by the management during
the course of audit, the company is not a declared wilful defaulter by any bank or
financial institution or other lender. Hence Clause ix (b) of the
Companies (Auditors Report) Order is not applicable.
(c) On the basis of the information or explanation provided by the management during
the course of audit, Term loans were applied for the purpose for which the loans were
obtained; no amount of loan has been diverted for any other purpose. Hence Clause ix (c)
of the Companies (Auditors Report) Order is not applicable.
(d) No funds has been raised on short term basis, Hence Clause ix (d) of the Companies
(Auditors Report) Order is not applicable.
(e) On the basis of the information or explanation provided by the management during
the course of audit, 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.
Hence Clause ix (e) of the Companies (Auditors Report) Order is not applicable.
(f) On the basis of the information or explanation provided by the management during
the course of audit, the company has not raised loans during the year on the pledge of
securities held in its subsidiaries, joint ventures or associate companies. Hence Clause
ix (f) of the Companies (Auditors Report) Order is not applicable.
(a) On the basis of the information or explanation provided by the management during
the course of audit, No money x. was raised by way of initial public offer or further
public offer (including debt instruments) during the year. Hence
Clause x (a) of the Companies (Auditors Report) Order is not applicable.
(b) On the basis of the information or explanation provided by the management during
the course of audit, The company has not made any preferential allotment or private
placement of shares or convertible debentures during the year. Hence Clause x (b) of the
Companies (Auditors Report) Order is not applicable.
(a) On the basis of the information or explanation provided by the management during
the course of audit, no material xi. fraud by the company or any fraud on the Company by
its officers/employees has been noticed or reported. (b) During the course of performance
of audit, on the basis of information produced before us by the management, we are in the
opinion that no offence of fraud involving such amount or amounts as may be prescribed, is
being or has been committed in the company by its officers or employees. Hence sub-section
(12) of section 143 of the Companies Act is not applicable and therefore there is no
requirement of reporting under clause 11(b) of Companies
(Auditors Report) Order, 2020.
(c) On the basis of the information or explanation provided by the management during
the course of audit, there were no whistle-blower complaints during the year.
In our opinion, the company is not a nidhi company. Therefore, the provisions of clause
(xii) of the Companies (Auditors xii. Report) Order, 2020 are not applicable to the
company.
According to the information and explanations given to us all the transactions with the
related parties are in compliance with xiii. sections 177 and 188 of Companies Act, 2013
and the details have been disclosed in the Standalone Financial Statements Statement as
required by the applicable Ind AS 24, Related Party Disclosures specified under Section
133 of the Act.
(a) In our opinion and based on our examination, the company has an internal audit
system commensurate with the xiv. size and nature of its business; (b) We have considered
the internal audit reports of the company issued till date, for the period under audit.
According to the information and explanations given to us, in our opinion, the Company
has not entered into any non-cash xv. transactions with the directors or persons connected
with them covered under Section 192 of the Act. Hence reporting under Clause 15 of
Companies (Auditors Report) Order, 2020 is not applicable.
In our opinion and according to the information and explanations given to us by the
management, the company is not xvi. required to be registered under Section 45 IA of the
Reserve Bank of India, 1934.and sub clause (b),(c),(d) of clause xvi is not applicable.
According to the information and explanations given to us by the management, the
company has not incurred cash losses xvii. in the financial year and in the immediately
preceding financial year.
There has not been any resignation of the statutory auditors during the year. Hence
Clause xviii of the Companies xviii. (Auditors Report) Order is not applicable As per our
opinion there is no material uncertainty exists as on the date of the audit report that
company is capable of xix. 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 on the
basis of the financial ratios, ageing and expected date s of realization of financial
assets and payment of financial liabilities, other information accompanying the financial
statements and the auditors knowledge of the
Board of Directors and management plans.
FOR M/s C.P JARIA & CO. CHARTERED ACCOUNTANTS,
(Firmfs Registration No: 104058W)
CA. PANKAJ JAIN
Place: Surat Partner
Date: May 30, 2023 M. No. 112020
UDIN: 23112020BGUNCG8672
ANNEXURE-B TO THE AUDITORfS REPORT
Report on the Internal Financial Controls under Clause (I) of Sub-Section 3 of Section
143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of M/S
BETEX INDIA LIMITED ("the Company") as on March 31, 2023 in conjunction with
our audit of the financial statements of the Company for the year ended on that date.
MANAGEMENT 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
issued by the Institute of Chartered
Accountants of India (‘ICAI). These responsibilities include the designs,
implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its 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
Companies Act, 2013.
AUDITORfS 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 Guidance Note on Audit of Internal Financial Controls over Financial
Controlling(the "Guidance Note") and the Standards on Auditing issued by ICAI
and deemed to be prescribed under section 143
(10) of the Companies Act 2013, to the extent applicable to an audit of internal
financial controls-both applicable to an audit o Internal Financial Controls and both
issued by the Institute of Chartered Accountants of India .Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the
Audit to obtain responsible assurance about whether adequate internal financial controls
over financial reporting was 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 system over 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, testing and evaluating and 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 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.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal financial control 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 control 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
disposition of the assets of the Company. (2) provide reasonable assurance that
transaction 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 un-authorized 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
controls, material misstatements due to error or fraud may occur and 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 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.
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 2021,
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 M/s C.P JARIA & CO. CHARTERED ACCOUNTANTS,
(Firmfs Registration No: 104058W)
CA. PANKAJ JAIN
Place: Surat Partner
Date: May 30, 2023 M. No. 112020
UDIN: 23112020BGUNCG8672
+91-9892691696
