To the Members of
Bhilwara Technical Textiles Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Bhilwara
Technical Textiles Limited ("the Company"), which comprises the Balance
Sheet as at March 31, 2023 and the Statement of Profit and Loss [including Other
Comprehensive Income/ (Loss)], the Statement of Cash Flows and the Statement of Changes in
Equity for the year then ended, and 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 standalone 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
prescribed under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31, 2023,
and its profit, total comprehensive loss, its cash flows and the changes in equity for the
year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing specified under section 143(10) of the Act
(SAs). Our responsibilities under those Standards are further described in the
Auditors Responsibility 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 standalone financial statements under
the provisions of the Act and the Rules made thereunder, 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 obtained by us is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Key Audit Matters
We have determined that there are no key audit matters to communicate
in our report.
Information Other than the Standalone financial statements and
Auditors Report Thereon
The Companys Board of Directors is responsible for the other
information. The other information comprises the Directors report, but does not
include the standalone financial statements and our auditors report thereon. The
Directors report is expected to be made available to us after the date of this
Auditors report.
Our opinion on the standalone 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 and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or
our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated.
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 as required under SA 720 ‘The Auditors responsibilities
Relating to Other Information.
Managements responsibility for the standalone financial
statements
The Companys Board of Directors is responsible for the matters
stated in section 134(5) of 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 including other comprehensive income, cash flows and changes in equity of the
Company in accordance with the Ind AS 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 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
statement 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.
Those Board of Directors are also responsible for overseeing the
Companys financial reporting process.
Auditors responsibility
Our objectives are to obtain reasonable assurance about whether the
standalone financial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an 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 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, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial 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 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 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
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 standalone
financial statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the standalone 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 deffciencies 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.
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 paragraphs 3 and 4 of the Order, to the extent applicable.
2. 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 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 it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss including Other
Comprehensive Loss, the Statement of Cash Flows and Statement of Changes in Equity dealt
with by this Report are in agreement with the relevant 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 the 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 controls, refer
to our separate Report in "Annexure B". Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Companys
internal financial controls over financial reporting.
g. With respect to the other matters to be included in the
Auditors Report in accordance with the requirements of section 197(16) of the Act,
as amended,
In our opinion and to the best of our information and according to the
explanations given to us, no remuneration was paid by the Company to its directors during
the year and hence not commented upon
h. 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 has no pending litigations as confirmed by the
Management; therefore, there is no impact on its financial position in its financial
statements;
ii. The Company did not have any long-term contracts 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 as disclosed in the note 36 (vi) to the Standalone Financial
Statements, 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 as disclosed in the note 36 (v) to the Standalone Financial Statements, 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;
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.
ANNEXURE ‘A TO AUDITORS REPORT
(Annexure referred to in our report of even date)
Report on the matters specified in paragraph 3 of the Companies
(Auditors Report) Order, 2020 ("the Order) issued by the Central
Government of India in terms of section 143(11) of the Companies Act, 2013 ("the
Act") as referred to in paragraph 1 of ‘Report on Other Legal and Regulatory
Requirements section of our report of even date
i. (a) The Company has maintained proper records showing particulars,
including quantitative details and situation of fixed assets.
(b) The Company has a programme of physical verification to ensure that
all the assets are verified which, in our opinion, is reasonable having regard to the size
of the company and the nature of its assets. Since the fixed assets were purchased during
the year therefore no physical verification of fixed assets was required.
(c) According to the information and explanation given to us and the
records examined by us, the company is not having any immovable property as on 31st
March, 2023.
(d) The Company has not revalued any of its Property, Plant and
Equipment and intangible assets during the year.
(e) As per information and explanation given to us, no proceedings have
been initiated during the year or are pending against the Company as at March 31, 2023 for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as
amended in 2016) and rules made thereunder.
ii. (a) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals and no material discrepancies
were noticed on physical verification.
(b) According to the information and explanations given to us, at any
point of time of the year, the Company has not been sanctioned any working capital
facility from banks or financial institutions and hence reporting under clause (ii)(b) of
the Order is not applicable iii. According to the information and explanations given to
us, the company has not granted any loans, secured or unsecured to companies, firms,
Limited Liability Partnerships or other parties covered in the register maintained under
section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a)
to (f) of the Order are not applicable to the company and hence not commented upon.
iv. In our opinion and according to the information and explanations
given to us, there are no loans, investments, guarantees, and securities granted during
the year in respect of which provisions of section 185 and 186 of the Companies Act 2013
are applicable and hence not commented upon.
v. The Company has not accepted any deposits from the public within the
meaning of directives issued by the Reserve Bank of India and provisions of sections 73 to
76 or any other relevant provisions of the Companies Act, 2013 and the rules framed
thereunder.
vi. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records under sub-section
(1) of section 148 of the Companies Act, 2013 in respect of activities carried out by the
Company.
vii. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company is regular in
depositing undisputed statutory dues in respect of income tax, service tax, and other
material statutory dues as applicable with the appropriate authorities. Further, there
were no undisputed amounts outstanding at the year end for a period of more than six
months from the date they became payable as at 31st March, 2023.
(b) According to the information and explanations given to us and the
records of the company examined by us, there are no statutory dues of income-tax,
sales-tax, GST, service tax, duty of customs, duty of excise, value added tax which have
not been deposited on account of a dispute.
viii. According to the information and explanation given to us,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) According to the information and explanation given to us, the
company has not defaulted in repayment of loans or other borrowings or in the payment of
interest thereon to any lender.
(b) According to the information and explanation given to us, the
Company has not been declared wilful defaulter by any bank or financial institution or
government or any government authority.
(c) According to the information and explanation given to us, the
company has not obtained any term loans. Hence, reporting under clause 3(ix)(c) of the
Order is not applicable.
(d) On an overall examination of the standalone financial statements of
the Company, funds raised on short-term basis have not been used during the year for
long-term purposes by the Company.
(e) The Company has not made any investment in or given any new loan or
advances to its associates during the year and the Company does not have any Subsidiary or
joint venture. Hence, reporting under clause 3(ix)(e) of the Order is not applicable.
(f) The company has not raised loans during the year on the pledge of
securities held in its associate companies and the Company does not have any Subsidiary or
joint venture. Hence, reporting under clause 3(ix)(f) of the Order is not applicable.
x. (a) According to the information and explanations given by the
Management, the company has not raised any money of initial public offer/further public
offer. Hence reporting under clause 3(x)(a) of the order is not applicable to the company
(b) During the year the Company has not made any preferential allotment
or private placement of shares or convertible debentures (fully or partly or optionally)
and hence reporting under clause 3(x) (b) of the Order is not applicable to the Company
xi. (a) According to the information and explanations given to us and based on audit
procedure followed, no fraud by the Company or on the Company by its officers or employees
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) According to the information and explanation given to us, there is
no whistle-blower complaints received during the year by the company.
(xii) The Company is not a Nidhi Company and hence reporting under
clause (xii) of the Order is not applicable.
(xiii) According to the information and explanation given to us and
based on our examination of the records of the company, transactions with the related
parties are in compliance with section 177 &188 of Companies Act, 2013 where
applicable and the details of such transactions have been disclosed in the standalone
financial statements as required by the applicable Accounting Standards;
(xiv) (a) In our opinion the Company has an adequate internal audit
system commensurate with the size and the nature of its business.
(b) We have considered, the internal audit reports 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) According to the information and explanation given to us and based
on our examination of the records of the company, 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.
(xvi) (a) As per the information and explanation given to us, 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) As per the information and explanation given to us, there is no
core investment company (as defined in the Core Investment Companies (Reserve Bank)
Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not
applicable.
(xvii) The Company has not incurred cash losses during the financial
year covered by our audit and the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors of the
Company during the year.
(xix) On the basis of the financial ratios, ageing and expected dates
of realisation of financial assets and payment of financial liabilities, other information
accompanying the standalone financial statements and our knowledge of the Board of
Directors and Management plans and based on our examination of the evidence supporting the
assumptions, nothing has come to our attention, which causes us to believe that any
material uncertainty exists as on the date of the audit report indicating that Company is
not capable of meeting its liabilities existing at the date of balance sheet as and when
they fall due within a period of one year from the balance sheet date. We, however, state
that this is not an assurance as to the future viability of the Company. We further state
that our reporting is based on the facts up to the date of the audit report and we neither
give any guarantee nor any assurance that all liabilities falling due within a period of
one year from the balance sheet date, will get discharged by the Company as and when they
fall due.
(xx) The company is not having any obligation under section 135 of the
Companies Act2013 Accordingly, reporting under clause 3(xx)(a) and 3(xx)(b) of the
Order are not applicable for the year.
ANNEXURE B
to the Independent Auditors Report to the Members of Bhilwara
Technical Textiles Limited on financial statements
Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act") as referred
to in paragraph 1(f) of ‘Report on Other Legal and Regulatory Requirements
section
We have audited the internal financial controls over financial
reporting of Bhilwara Technical Textiles Limited ("the Company") as of 31st
March, 2023 in conjunction with our audit of the standalone 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 issued by the Institute of Chartered Accountants of India. 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 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.
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 Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting (the "Guidance Note") and the Standards on Auditing
specified 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 of 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 reasonable 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, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditors judgement, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or
error.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the 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 standalone 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 dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of
standalone 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 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 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 March 31, 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 Doogar & Associates |
|
Chartered Accountants |
|
Firm Regn. No. 000561N |
|
Mukesh Goyal |
| Place: Noida (U.P) |
Partner |
| Date: 16th May, 2023 |
Membership No. 081810 |
| UDIN: 23081810BGZCIA8914 |
|
+91-9892691696
