INDEPENDENT AUDITORS REPORT
To the members of Classic Filaments Limited,
Opinion
We have audited the standalone financial statements of Classic Filaments Limited ("the Company"), which comprise the balance sheet as at 31st March 2025, and the statement of Profit and Loss, (statement of changes in equity) and statement of cash flows for the year then
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, 2025, and profit, (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 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 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.
Emphasis of Matter
19, which describes the ongoing assessment by the management regarding the income tax notice received by the company for alleged bogus purchases in the prior year. As stated in the note, management is of the view that the purchases are valid and that the outcome of this matter will not have a material impact on the financial results for the current period. Our
Managements 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 in equity) and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act This responsibility also includes maintenance of adequate accounting records in accordance provisions of the Act for safeguarding of the assets of the Company and for preventing detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reliability and prudent; and design, implementation and maintenance of adequate internal financing 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
In preparing the Ind AS financial statements, management is responsible for assessing the Companys using the going concern basis of accounting unless management either intends to liquidate the
The Board of Directors are also responsible for overseeing the companys financial reporting process.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken 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
• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate financial controls
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting because the adverse consequences of doing so would be reasonably be expected to outweigh the public
1. As required by required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by 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 paragraph 3 8s 4 of the Order.
2. As required by section 143(3) of the Act, we further 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) Except for the possible effects of the matter described in the paragraph (h) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, in our Statement of changes in Equity dealt with this report are in agreement the statements of books of (d) In our opinion, the aforesaid financial statements comply with the applicable Accounting Standards specified under Section 133 of the Act, read with relevant rules thereunder as
(e) On the basis of written representation received from the directors as on March 31, 2025 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2025 from being appointed as the directors 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
(g) According to information and explanations given to us and based on our examination of the records of the Company, the Company had not paid/provided managerial
the Company has used accounting software for maintaining its books of accounts,
(i) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditors
1. The Company has disclosed the impact of pending litigations on its financial position
2. The company did not have any long-term contracts including derivative contracts; as transfer any sums to the Investor Education & Protection Fund. The question of delay in transferring such sums does not arise compliance of section 123 of the Act is not applicable 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
Chartered Accountants
F&N.: 154114W/W100873
UDIN: 25147112BMIVGH6984
ANNEXURE "A" TO THE AUDITORS REPORT
• On the basis of such checks as we considered appropriate and accordingly to the information and explanations given to us during the course of our audit, we report that:
NO. Particulars |
|
(a) (A) whether the company is maintaining proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment; |
Yes |
(B) whether the company is maintaining proper records showing full particulars of intangible assets; |
Not Applicable |
properties where the company is the lessee and the lease agreements |
Yes |
*also indicate if in dispute. |
|
(d) whether the company has revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the Registered Valuer; specify the amount of change, if change is 10% or more in the aggregate of the net canying value of each class of Property, Plant and Equipment or intangible assets |
Not Applicable |
the company for holding any benami property under the Benami thereunder, if so, whether the company has appropriately disclosed |
Not Applicable |
(ii) (a) whether physical verification of inventory has been conducted at of the auditor, the coverage and procedure of such verification by the management is appropriate; whether any discrepancies of 10% or more in the aggregate for each class of inventory were noticed and if so, whether they have been properly dealt with in the books of |
Not Applicable |
(b) whether during any point of time of the year, the company has been aggregate, from banks or financial institutions on the basis of statements filed by the company with such banks or financial |
Not Applicable |
(iii) • whether during the year the company has made investments in, in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties, if so, |
No |
(A) whether during the year the company has provided loans or provided advances in the nature of loans, or stood guarantee, or provided security to any other entity [not applicable to companies whose |
V. |
the balance sheet date with respect to such loans or advances and |
Not Applicable |
guarantees or security to parties other than subsidiaries, joint |
5,49,61,804/- |
(B)whether the investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in |
No |
(C) in respect of loans and advances in the nature of loans, whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; |
Not Applicable |
company for recovery of the principal and interest; |
Not Applicable |
(E) whether any loan or advance in the nature of loan granted 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, if so, specify the aggregate amount of such dues renewed or extended or settled by fresh loans and the percentage of the aggregate to the total loans or advances in the nature of loans granted during the year [not applicable to companies whose principal business |
Not Applicable |
(F) whether the company has granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment, if so, specify the aggregate amount, percentage thereof to the total loans granted, aggregate amount of loans granted the Companies Act, 2013; |
NO |
(iv) in respect of loans, investments, guarantees, and security, whether provisions of sections 185 and 186 of the Companies Act have been |
|
(v) in respect of deposits accepted by the company or amounts which are provisions of the Companies Act and the rules made thereunder, where applicable, have been complied with, if not, the nature of such |
Not Applicable |
(vi) whether maintenance of cost records has been specified by the Central |
Not Applicable |
(vii) (a) whether the company is regular in depositing undisputed statutory dues including Goods and Services Tax, provident fund, employees duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities and if not, the extent of the arrears of |
- |
(b) where statutory dues referred to in sub-clause (a) have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned (a mere representation to the concerned Department shall not be treated as a dispute); |
Not Applicable |
(viii) whether any transactions not recorded in the books of account have been surrendered or disclosed as income during the year in the tax the previously unrecorded income has been properly recorded in the books of account during the year |
No |
(ix) (a) whether the company has defaulted in repayment of loans or other the period and the amount of default to be reported as per the format including debt Name of lender* *"rsr" P interest tSF ifany |
No |
‘Lender wise details to be provided in case of defaults to banks, financial institutions financial Institution or other lender |
NO |
(c) whether term loans were applied for the purpose for which the loans were obtained; if not, the amount of loan so diverted and the purpose |
No |
(d) whether funds raised on short term basis have been utilized for long term purposes, if yes, the nature and amount to be indicated |
No |
(e) whether the company has taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures, if so, details thereof with nature of such transactions |
NO |
(f) whether the company has raised loans during the year on the pledge companies, if so, give details thereof and also report if the company |
No |
(x) (a) whether moneys raised by way of initial public offer or further public offer (including debt instruments) during the year were applied for the delays or default and subsequent rectification, if any, as may be applicable, be reported; |
Not: Applicable |
(b) whether the company has made any preferential allotment or private placement of shares or convertible debentures (fully, partially or have been complied with and the funds raised have been used for the purposes for which the funds were raised, if not, provide details in |
Not: Applicable |
w (a) whether any fraud by the company or any fraud on the company has been noticed or reported during the year, if yes, the nature and the |
NO |
prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government; |
NO |
(c) whether the auditor has considered whistle-blower complaints, if any, received during the year by the company; |
Not Applicable |
m (a) whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1:20 to meet out the liability; |
Not Applicable |
(b) whether the Nidhi Company is maintaining ten per cent, unencumbered term deposits as specified in the Nidhi Rules, 2014 to meet out the liability; . |
Not Applicable |
(c) whether there has been any default in payment of interest on deposits or repayment thereof for any period and if so, the details thereof; |
Not Applicable |
(mi) have been disclosed in the financial statements, etc., as required by the applicable accounting standards |
Ves |
(xiv) (a> aUdi‘ SySte" CO_UratC |
Yes |
(b) whether the reports of the Internal Auditors for the period under audit were considered by the statutory auditor; |
Yes |
w whether the company has entered into any non-cash transactions with directors or persons connected with him and if so, whether the provisions of section 192 of Companies Act have been complied with; |
No |
(xvi) ( ^ of the Reserve Bank of India Act, 1934 (2^>f 1934) and if so, whether the registration has been obtained; |
Not Applicable |
Housing Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India |
Not Applicable |
(c) whether the company is a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India, if so, whether it exempted or unregistered CIC, whether it continues to fulfil such |
Not Applicable |
(d) whether the Group has more than one CIC as part of the Group, if yes, |
Not Applicable |
(xvu) whether the company has incurred cash losses in the financial year and in the immediately preceding financial year, if so, state the amount of |
CY 1096337/- PY 988708/- |
(xviii) whether there has been any resignation of the statutory auditors during issues, objections or concerns raised by the outgoing auditors; |
conslteed |
(xix) on the basis of the financial ratios, ageing and expected dates of |
Ye^ |
knowledge of the Board of Directors and management plans, whether the date of the audit report that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a |
|
(xx) (a) whether, in respect of other than ongoing projects, the company has financial year in compliance with second proviso to sub-section (5) of section 135 of the Companies Act, pursuant to any ongoing project, |
Not Applicable |
(xxi) whether there have been any qualifications or adverse remarks by the respective auditors in the Companies (Auditors Report) Order (CARO) reports of the companies included in the consolidated financial statements, if yes, indicate the details of the companies and the |
Not Applicable |
ANNEXURE-B TO THE AUDITORS REPORT
Report on the Internal Financial Controls under Clause (I) of Sub-Section 3 of Section 143 of We have audited the internal financial controls over financial reporting of M/S Classic Filaments Limited ("the Company") as on 31st March 2025 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 Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (TCAT). 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 accounting records, and the timely preparation of reliable financial information , as required under the Companies Act, 2013 of Internal Financial Controls over Financial Controlling(the "Guidance Note") and the Standards on 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 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
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 our audit opinion on the Companys internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles companys internal financial control over financial reporting includes those policies and appropriation that (1) pertain to the maintenance of records that in reasonable detail, accurately and fair 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 ,use, or disposition of the companys assets that could have a material effect on the financial
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
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 2025, based on the internal control over financial reporting the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
FRN.: 54114W/W100873
ShaitesfrK. Lakhankiya
M.No.: 147112
Date: May 08, 2025
UDIN: 25147112BMIVGH6984.
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