TO THE MEMBERS OF BHALCHANDRAM CLOTHING LIMITED REPORT ON THE FINANCIAL STATEMENTS
OPINION
We have audited the accompanying financial statements of BHALCHANDRAM CLOTHING
LIMITED ("The Company "), which comprise the Balance Sheet as at March 31,
2023, the Statement of Profit & Loss Account, statement of Cash Flow for the year then
ended and notes to the financial statements including a summary of significant accounting
policies and other explanatory information.
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 in the manner so required and give a true and fair view in conformity
with the Indian accounting standards prescribed U/s 133 of the Act and other accounting
principles generally accepted in India, of the state of affairs of the Company as at March
31, 2023, Statement of Profit and Loss and its cash flows for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the financial statement 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 ICAI
together with the independent requirement that are relevant to our audit of the Financial
Statements under the provisions of the Act and the rules made there under and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the
ICAIs code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion on financial statements.
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.
INFORMATION OTHER THAN STANDALONE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
The Companys Board of Directors are responsible for the preparation of the other
information. The other information comprises of the information included in the management
discussion and analysis, Boards report including Annexure to the Boards Report, corporate
governance and shareholders information, but does not include the financial statements and
our auditors report thereon.
Our opinion on standalone financial statements does not cover the other information and
we do not express any form of assurance or conclusion thereon.
In connection with our audit of the financial statement, our responsibility is to read
the other information and in doing so, consider whether the other information is
materially inconsistent with the financial statement or other information obtained during
the course of our audit or otherwise appear 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 the facts. We have nothing to report in this
regard.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE 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 financial statements that give a true and fair view of the financial position
,financial performance and cash flow of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified under
section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provision of the Act for safeguarding the assets of the Company and for preventing and
detecting frauds and other irregularities, selection and application of the 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 we 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 realistic no
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 STATMENTS
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 high
level 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 theses 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
omission, 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 Companies Act 2013, 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 the management.
• Conclude on the appropriateness of managements use of going concern basis of
accounting and based on the audit evidence obtained, whether a material uncertainty
exists, we are required to draw attention in our auditors report to the related
disclosures in the financial statement 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.
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 regulations 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 communications.
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
Companies Act 2013, we give in the Annexure I a statement on the matters specified in the
paragraph 3 and 4 of the Order, to the extent applicable.
2. As required under provisions of 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 purposes 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, Statement of Profit & Loss and cash flow Statement dealt with
by this report is in agreement with the books of account.
d. In our opinion, the aforesaid financial statements comply with the accounting
standards specified under section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e. On the basis of written representations received from the directors as on March,31,
2023 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 controls over financial
reporting of the Company and the operating effectiveness of such refer to our separate
report in Annexure II ;
g. With respect to the other matters to be included in the Auditors Report in
accordance with Rules 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 have material impact on its
financial position in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts
that require provision under any law or accounting standards for which there were any
material foreseeable losses.
iii. There were no amounts which are required to be transferred to the Investor
Education and Protection Fund by the Company during the year.
ANNEXURES I TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the Auditors Report to the Members of BHALCHANDRAM
CLOTHING LIMITED on accounts for the year ended 31st March 2023.
To the best of our information and according to the explanations provided to us by the
Company and the books of account and records examined by us in the normal course of audit,
we state that:
1. In respect of Fixed Assets:
a) The Company does not have any Fixed Assets. Hence, this clause is not applicable.
2. In respect of Inventories:
a) The Company does not have any inventory and hence reporting under clause 3(ii)(a) of
the Order is not applicable.
3. The company has granted interest free unsecured loans recoverable on demand to
companies covered in the register maintained under section 189 of the Companies Act in
respect of which:
a) The terms and conditions of the grant of such loans are, in our opinion, prima
facie, not prejudicial to the Companys interest.
b) The schedule of repayment of principal has not been stipulated.
c) Loans are recoverable on demand hence question of overdue does not arise.
d) In respect of loans granted by the Company, there is no overdue amount remaining
outstanding as at the balance sheet date as there is no stipulation for repayment.
e) No loan granted by the Company which has fallen due during the year, has been
renewed or extended or fresh loans granted to settle the over dues of existing loans given
to the same parties.
f) The Company has granted unsecured interest free loan repayable on demand and without
specifying any terms or period of repayment. Details of loan granted are as below:
| Loan to Related Parties |
Amount (Rs. In Lakhs) |
| Aggregate amount of loan granted to company during the year. |
0.00 |
| Repayment received from related party |
2.50 |
| Balance Outstanding as at the year end 31.03.23 |
47.00 |
It is informed that the Company has not provided any guarantee or security or granted
any advances in the nature of loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or any other parties.
4. In our opinion and according to information and explanations given to us, the
company has complied with the provision of section 185 and 186 of companies Act, 2013 in
respect of loans, investments, guarantees and security.
5. During the year no deposits from the public have been accepted by the Company,
falling in the purview of Section 73 to 76 or any other provision of the Companies Act,
2013.
6. The maintenance of cost records has not been specified by the Central Government
under subsection (1) of section 148 of the Companies Act, 2013 for the business activities
carried out by the Company. Hence, reporting under clause (vi) of the Order is not
applicable to the Company.
7. In respect of statutory dues:
(a) In our opinion, the Company is generally regular in depositing undisputed statutory
dues, including Goods and Services tax, Provident Fund, Employees State Insurance, Income
Tax, duty of Custom, duty of Excise, Cess and other material statutory dues applicable to
it with the appropriate authorities. There were no undisputed amounts payable in respect
of Goods and Service tax, Provident Fund, Employees State Insurance, Income Tax, duty of
Custom, duty of Excise, Cess and other material statutory dues in arrears as at March 31,
2023 for a period of more than six months from the date they became payable.
(b) There are no statutory dues referred to in sub-clause (a) above which have not been
deposited as on March 31, 2023 on account of any disputes.
8. 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).
9. In respect of borrowings:
a) The company has not defaulted in repayment of 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 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) On an overall examination of the financial statements of the Company, the Company
has not raised any short-term funds during the year and hence reporting on 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 loans during the year on the pledge of securities held in
its subsidiaries, joint ventures or associate companies hence reporting on clause 3(ix)(f)
of the Order is not applicable.
10. In respect of issue of shares:
a) The Company has not raised money 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 shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause 3(x)(b) of the Order is not applicable.
11. According to the information and explanation given to us, no material fraud on or
by the officer of company has been noticed or reported during year.
12. In our opinion and according to information and explanations given to us, the
company is not a Nidhi Company accordingly provision of this clause is not applicable.
13. In our opinion and according to information and explanations given to us, all
transactions with the related parties are in compliance with sections 177 and 188 of
Companies Act, 2013, the details have been disclosed in the Financial Statements as
required by the applicable accounting standards;
14. In respect of internal control:
a) In our opinion the Company has an adequate internal audit system commensurate with
the size and the nature of its business.
b) The company has appointed the Internal Auditor.
15. 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
provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
16. In respect of registration as Non-Banking Finance Company:
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), (b) and (c)
of the Order is not applicable.
b) 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.
17. The company has incurred cash losses of Rs (5,89,546)/- in FY 22-23 & Rs
(76,69,980)/- in FY 21-22.
18. There has been no resignation of the statutory auditors of the Company during the
year.
19. 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.
20. In respect of Corporate Social Responsibility:
The compliance of Corporate Social Responsibility is not applicable to the company as
per subsection (1) of section 135 of the Companies Act, 2013. Hence, reporting under
clause (xx) of the Order is not applicable to the Company.
21. Since, Consolidation of Financial Statements are not applicable to the company.
Hence, reporting under this clause is not applicable.
Annexure II
Independent Auditors report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
In conjunction with our audit of the financial statements of BHALCHANDRAM CLOTHING
LIMITED ("the Company") as on and for the year ended 31 March 2023, we have
audited the internal financial controls over financial reporting (IFCoFR) of the company
as on that date.
Managements Responsibility for Internal Financial Controls
The Companys Board of Directors is responsible for establishing and maintaining
internal financial controls based on the criteria being specified by the management. These
responsibilities includes design, implementation and maintenance of adequate internal
financial controls, that were operating effectively, for ensuring orderly and efficient
conduct of the companys business including adherence to companys policies, safeguarding
of its assets, prevention and detection of frauds and errors, accuracy and completeness of
the accounting records, and timely preparation of reliable financial information, as
required under the Act.
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 auditors judgment, including
assessment of 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 IFCoFR.
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. A companys
IFCoFR includes those policies and procedures that:
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company;
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 the management and directors of the company; and
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 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.
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 L S M & Co |
| Chartered Accountants |
| Firms Registration Number: 116870V |
| CA Navneet Lahoti |
| Partner |
| Membership Number: 100529 |
| Place: Mumbai |
| Date: 19th May 2023 |
| UDIN: 23100529BGVUYD7226 |
+91-9892691696
