TO THE MEMBERS OF EVERGREEN TEXTILES LIMITED
REPORT ON THE AUDIT OF THE STANDALONE IND AS FINANCIAL STATEMENT
Opinion
We have audited the accompanying standalone Ind AS Financial statements of EVERGREEN
TEXTILES LIMITED (the Company), which comprise the Balance Sheet as at 31st March,
2023, the Statement of Profit & Loss (including Other Comprehensive income), Statement
of Changes in Equity and the Cash Flow Statement for the year ended 31st March 2023, and a
summary of the 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 accounting principles generally accepted in India, of
the state of affairs of the Company as at 31st March, 2023, and its loss, the 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 Act. Our responsibilities under those Standards are further
described in the Auditors Responsibilities for the Audit of the Standalone Financial
Statements section of our Report. We are independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together
with the independence 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 we have obtained is
sufficient and appropriate to provide a basis for our audit opinion on the standalone
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 standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined that there are no key audit matters
to communicate in our report.
Information other than the financial statements and auditors report thereon
The Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
Annual Report, but does not include the standalone financial statements and our auditors
report thereon. Our opinion on the standalone 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 standalone 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 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.
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 Ind AS financial statements that give a true and fair view of the State
of affairs, profit/loss including other comprehensive income, changes in equity and cash
flows of the Company in accordance with the accounting principles generally accepted in
India, including the Indian Accounting Standards (Ind AS) specified under section 133 of
the Act read with 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 of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of
accounting records, relevant to the preparation and presentation of the standalone Ind AS
financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements, the 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 the Board of Directors either intends to liquidate the company or to
cease operations or has no realistic alternative but to do so. The Board of Directors is
also responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
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 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 Standalone
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 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 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 auditor s 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 Standalone
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 (i) in 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 standalone 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 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 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.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2020 ("The CARO Order,
2020"), 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.
A. As required by 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 it appears from our examination of those books;
c) The Standalone Balance Sheet, the Statement of Profit & Loss (including Other
Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity
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 Indian
Accounting Standards specified under section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;
e) On the basis of the written representations received from the Directors as on 31st
March, 2023, and taken on record by the Board of Directors, none of the Directors is
disqualified as on 31st March, 2023 from being appointed as a Director in terms of Section
164 (2) of the Act;
f) With respect to the adequacy of the internal financial control over financial
reporting of the Company with reference to these standalone Ind AS financial statements
and the operating effectiveness of such controls, refer to our separate report in
Annexure B to this report;
g) There is no managerial remuneration paid during the year under review, hence
reporting for managerial remuneration clause is not applicable.
B. 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 disclosed the impact, if any, of pending litigations on its
financial position in its standalone Ind AS financial statements;
ii. The Company does not have any long term contracts including derivative contracts as
at 31st March, 2023, hence the question of commenting on any material foreseeable losses
thereon does not arise.
iii. There has not been an occasion in case of the Company during the year ended 31st
March, 2023, to transfer any sums to the Investor Education and Protection Fund. The
question of delay in transferring such sum does not arise.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to
the Company for the year ended 31st March, 2023.
v. The management has represented that, to the best of its knowledge and belief, other
than that disclosed in the notes to the accounts, 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 person(s) or entity(ies), including foreign
entities ("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;
vi. The management has represented, that, to the best of its knowledge and belief,
other than that disclosed in the notes to the accounts, no funds have been received by the
company from any person(s) or entity(ies), including foreign entities ("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;
vii. Based on audit procedures performed, nothing has come to our notice that has
caused us to believe that the representations under sub-clause (v) and (vi) contain any
material misstatement.
viii. The dividend declared or paid during the year by the company is in compliance
with section 123 of the Companies Act, 2013.
For S K BHAGERIA AND ASSOCIATES CHARTERED ACCOUNTANTS
(Firm Regn No.: 112882W)
(S K BHAGERIA)
PARTNER
Membership No. 041404
UDIN: 23041404BGXZXP1118
Date: 29th May, 2023
Place: Mumbai
Annexu re "A" to the Independent Auditors Report on the standalone financial
statements of Evergreen Textiles Limited.
With reference to the Annexure A referred to in the Independent Auditors Report to the
members of the Company on the standalone financial statements for the year ended 31 March
2023, we report the following in accordance with paragraph 3 of the Companies (Auditors
Report) Order, 2020:
i. In case of Fixed Assets:
(a) As informed, the Company does not have any Fixed Assets and hence reporting under
clause (i)(a), (b), (c), (d) & (e) of the CARO Order, 2020 is not applicable for the
Company.
ii. In case of Inventory:
(a) As informed, the Company does not have any inventory and hence reporting under
clause (ii) (a) of the CARO Order, 2020 is not applicable for the Company.
(b) As informed, the Company has not been sanctioned any working capital limits from
banks or financial institutions and hence reporting under clause (ii) (b) of the CARO
Order, 2020 is not applicable for the Company.
iii. According to information and explanation given to us, the company has not invested
in, 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 other
parties and hence reporting under clause (iii) of the CARO Order, 2020 is not applicable
for the Company.
iv. In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of Section 185 and 186 of the Act, with respect
to the loans given, investments made, guarantees and securities given.
v. The company has not accepted any deposits from the public within the meaning of
section 73 to 76 of the Act and the Rules framed there under to the extent notified and
accordingly clause (v) of the order is not applicable for the company.
vi. As per information and explanation given to us, the company is not required to
maintain cost records under sub-section
(1) of Section 148 of the Companies Act, 2013.
vii. In respect of statutory dues:
(a) According to the information and explanations given to us and the records of the
company examined by us, in our opinion, the Company has generally been regular in
depositing all its undisputed statutory dues including Provident fund, Employees State
Insurance, Income Tax, Sales Tax, Service Tax, Custom duty, Excise duty, Value Added Tax,
Goods & Service Tax, Cess and Other Material Statutory dues applicable to it to the
appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident fund, Employees
State Insurance, Income Tax, Sales Tax, Service Tax, Custom duty, Value Added Tax, Goods
& Service Tax, Cess and Other Material Statutory dues, in arrears as at 31st March,
2023, for a period of more than six months from the date they become payable, except
Excise duty of Rs. 1,64,24,282/- (Previous Year Rs. 1,64,24,282/-) penalty of Rs
1,00,000/- (previous year Rs. 1,00,000/-) and relevant amount of non-quantified interest
thereon for the period from 1987 - 2000.
(c) According to the information and explanations given to us and the records of the
company examined by us, there are no dues of Income tax and Service Tax which have not
been deposited on account of any dispute. The particulars of dues of Excise duty &
Sales Tax including Value Added Tax as at 31st March, 2023 which have not been deposited
on account of a dispute, are as follows: -
| Sr. no. |
Name of the Statute |
Nature of Dues |
Amount (Rs in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
| 1. |
Central Excise |
Excise Duty, Interest & Penalty |
428.26 |
Aug 1996 to July 1998 |
Appelate Tribunal (CESTAT) |
| 2. |
Sales Tax |
Sales Tax & Interest |
1.76 |
1994-95 |
Sales Tax Tribunal |
| 3. |
Sales Tax |
Sales Tax & Interest |
13.43 |
1995-96 |
Sales Tax Tribunal |
| 4. |
Sales Tax |
Sales Tax & Interest |
0.10 |
1997-98 |
Sales Tax Tribunal |
| 5. |
Sales Tax |
Sales Tax & Interest |
0.30 |
1998-99 |
Sales Tax Tribunal |
| 6. |
Sales Tax |
Sales Tax & Interest |
2.06 |
1999-2000 |
Sales Tax Tribunal |
| 7. |
Sales Tax |
Sales Tax & Interest |
0.20 |
2000-01 |
Sales Tax Tribunal |
| 8. |
Sales Tax |
Sales Tax & Interest |
0.50 |
1994-95 |
Sales Tax Tribunal |
| 9. |
Sales Tax |
Sales Tax & Interest |
0.10 |
1995-96 |
Sales Tax Tribunal |
viii. According to the information and explanations given to us and the records of the
company examined by us, there are
no transactions which were not recorded in the books of accounts that had been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961.
ix. In our opinion, and according to the information and explanations given to us, the
Company did not have any outstanding dues to any lender. Hence reporting under clause (ix)
is not applicable. The Company is not declared as a wilful defaulter by any bank or
financial institution or other lender.
x. In respect of issue of securities:
(a) In our opinion and according to the information and explanations given to us, the
Company has not raised any money by way of initial public offer or further public offer
(including debt instruments) and has not taken any term loans during the year.
(b) In our opinion and according to the information and explanations given to us, the
company has also not made any preferential allotment or private placement of shares or
convertible debentures during the year.
xi. In respect of fraud:
(a) During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practice in India, and
according to the information and explanations given to us, we have neither come across any
instance of material fraud by the company or on the company noticed or reported during the
year, nor have been informed of any such case by the management.
(b) There had been no report filed by us in Form ADT-4 with the Central Government
under section 143(12) of the Companies Act, 2013 read with rule 13 of the Companies (Audit
and Auditors) Rules, 2014 in relation to fraud as explained in sub clause (a).
(c) As represented to us by the management, there are no whistle blower complaints
received by the Company during the year. Hence, we have nothing to report under clause
(xi) (c) of the order.
xii. The Company is not a Nidhi Company as per the provisions of the Companies Act,
2013. Therefore, the requirement to report on clause 3(xii)(a)/(b)/(c) of the Order is not
applicable to the Company.
xiii. According to the information and explanations 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 and 188 of the Act, where applicable, the details of such
transactions have been disclosed in the financial statements as required by the Indian
Accounting Standard (Ind AS) 24, Related Party Disclosures specified under section 133 of
the Act.
xiv. The company has not appointed any internal auditor for the year under review
xv. According to the information and explanations given to us and based on our
examination of the records of the company, the company has not entered into non-cash
transactions with directors or persons connected with them.
xvi. a) According to the information and explanations given to us, the company is not
required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934, and
hence reporting under clause (xvi)(a) of the CARO Order, 2020, is not applicable for the
Company.
b) The Company has not conducted any Non-Banking Financial or Housing Finance
activities without obtaining a valid Certificate of Registration (CoR) from the Reserve
Bank of India as per the Reserve Bank of India Act, 1934.
c) There is no Core Investment Company as a part of the Group, hence, the requirement
to report on clause 3(xvi)(d) of the Order is not applicable to the Company.
xvii. The Company has incurred a cash loss of Rs 16,89,764/- in the current year and Rs
11,26,800/- in the immediately preceding financial year.
xviii. During the year under review, M/s R K Khandelwal and
Associates (FRN. 105054W), Chartered Accountant (predecessor auditor) had resigned on
expiry of their term. We have considered all the issues, objections and concerns raised by
the said outgoing auditor.
xix. On the basis of the financial ratios disclosed in note to the financial
statements, ageing and expected dates of realization of financial assets and payment of
financial liabilities, other information accompanying the financial statements, 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 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 provisions for Corporate Social Responsibility under section 135 of the
Companies Act, 2013 is not applicable to the company and hence reporting under clause (xx)
is not applicable for the company.
xxi. The financial statements for the company are not incorporated in any Consolidated
Financial Statements in accordance with Indian Accounting Standard 110 and hence reporting
under clause (xxi) is not applicable for the company.
For S K BHAGERIA AND ASSOCIATES CHARTERED ACCOUNTANTS
(Firm Regn No.: 112882W)
(S K BHAGERIA)
PARTNER
Membership No. 041404
UDIN: 23041404BGXZXP1118
Date: 29th May, 2023
Place: Mumbai
Annexu re "B" to the Independent Auditors Report on the standalone financial
statements of Evergreen Textiles Limited
(Referred to in paragraph under Report on Other Legal and Regulatory Requirements
section of our report of even date)
Report on the Internal Financial Controls Clause (i) of Sub-section 3 of Section 143 of
the Companies Act, 2013.
We have audited the internal financial controls with reference to Standalone Financial
Statements of Evergreen 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 board of directors of the Company is responsible for establishing and maintaining
internal financial controls based on the internal controls over financial reporting
criteria established by the Company, considering the essential components of internal
controls 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, 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 internal financial controls over
financial reporting of the Company 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") issued by the Institute of Chartered Accountants
of India and the standards on auditing prescribed under Section 143 (10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. 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 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 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 judgment, including the assessment of the risks of
material misstatements in 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 control 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 (i) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (ii) 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
management and directors of the company; and (iii) 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.
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 of 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 and according to the information and explanations given to us, the
Company has, in all material respects, an adequate internal financial control system over
financial reporting and such internal financial controls over financial reporting were
operating effectively as at 31st March, 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 S K BHAGERIA AND ASSOCIATES CHARTERED ACCOUNTANTS
(Firm Regn No.: 112882W)
(S K BHAGERIA)
PARTNER
Membership No. 041404
UDIN: 23041404BGXZXP1118
Date: 29th May 2023
Place: Mumbai
+91-9892691696
