To the Members of M/s. Garment Mantra Lifestyle Umlted Report on the Standalone
Financial Statements Opinion
We have audited the accompanying standalone financial statements of Garment Mantra
Lifestyle Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that
date, and a summary of the significant accounting policies and other explanatory
information (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the 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 total comprehensive income
(comprising of profit and other comprehensive income), changes in equity and its cash
flows for the year ended.
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
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 together with the ethical requirements that are relevant to our audit of the
Standalone 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 Standalone Ind AS financial statements of the current
period. These matters were addressed in the context of our audit of the Standalone Ind AS
financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Directors 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
Responsibilities of management and those charged with governance for the Standalone
financial statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial
position, financial performance, (changes 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 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 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 were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the Standalone
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 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 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.
2022-23
and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls with reference to Standalone financial statements 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 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 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 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 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 Ind AS 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 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 "B" a statement on the matters specified in paragraphs 3 and 4
of the Order, to the
extent applicable.
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 and proper returns
adequate for the purposes of our audit have been received from the branches not visited by
us.
c) The Balance Sheet, the Statement of Profit and Loss (including comprehensive
income). Statement of changes in equity and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st
March, 2023 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 controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure A".
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, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
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, 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 would impact its financial
position
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses. 2022-23
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company or there were no amounts which
were required to be transferred to the Investor Education and Protection Fund by the
Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief,
no funds (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, 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;
(c) 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.
For N B T and Co
Chartered Accountants
Firm Registration No.: 140489W
-Sd-
Ashutosh Biyani
Partner
Membership No. 165017
Place: Mumbai
Date-25/05/2023
UDIN - 23165017BGXEZF3397
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE
STANDALONE IND AS FINANCIAL STATEMENTS OF GARMENT MANTRA LIFESTYLE LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of GARMENT
MANTRA LIFESTYLE LIMITED ("the Company") as of March 31, 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 issued by the institute of
Chartered Accountants of India and deemed to be prescribed under section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls,
both applicable to an audit 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 judgment, including the assessment of the risks of
material misstatement of the Standalone financial statements, whether due to fraud or
error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of standalone Ind AS
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 standalone 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 N B T & Co.
Chartered Accountants
Firm Registration No.: 140489W
-Sd-
Ashutosh Biyani
Partner
Membership No. 165017
Place: Mumbai
Date: 25/05/2023
UDIN: 23165017BGXEZF3397
"Annexure B" to the Independent Auditors Report
(Referred to in our report of even date to the members of GARMENT MANTRA LIFESTYLE
LIMITED as at and for the year ended 31st March, 2023).
i) In respect of its Plant and Equipment and Intangible Assets:
a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Plant and Equipment and Intangible Assets on the
basis of available information.
b) The Property, Plant and Equipment are physically verified by the Management
annually, which in our opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such verification as
compared with available records.
c) The title deeds of immovable properties (other than properties where the company is
the lessee and the lease agreements are duly executed in favour of the lessee) are held in
the name of the Company.
d) The Company has not revalued any of its Property, Plant and Equipment (including
right-of-use assets) and intangible assets during the year.
e) 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) The physical verification of inventory has been conducted by the management
once during the year and no discrepancies were noticed on such physical verification.
(b) The Company has obtained/using working capital limits for more than 5 crores in the
financial year and submitted the quarterly returns as required as per the terms, quarterly
return submitted by the company does not agree with the financial statements details of
the same is mentioned below: -
Particulars |
As per Return |
As per Financials |
Difference |
Reason |
Inventory |
2,449.50 |
2,486.43 |
(36.93) |
The difference is due to the submissions to the Banks were
made before financial reporting closure process |
Book Debts |
2,551.07 |
2,558.97 |
(07.09) |
iii) The Company has made investments in, companies, firms, Limited Liability
Partnerships, and has not granted any unsecured loans to other parties, during the year,
in respect of which:
(a) The Company has not provided any loans or advances in the nature of loans but has
provided guarantee for the loan obtained by its wholly owned subsidiary M/s Jannat Fabrics
and Apparels Private Limited, and has not provided security to any other entity during the
year.
(b) In our opinion, the investment made by the company during the year are, prima
facie, not prejudicial to the Companys interest.
(c) Since no loans has been granted by the company during the year, reporting under
clause 3(iii)(c ) is not applicable.
(d) Since no loans has been granted by the company during the year, reporting under
clause 3(iii)(d ) is not applicable.
(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 overdues of existing loans given
to the same parties.
(f) The Company has not granted any loans or advances in the nature of loans either
repayable on demand or without specifying any terms or period of repayment during the
year. Hence, reporting under clause 3(iii)(f) is not applicable.
iv) The Company has provided guarantee in respect of the loan obtained by its wholly
owned subsidiary M/s Jannat Fabrics and Apparels Private Limited. The Company has not
provided any security or granted any advances in the nature of loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or any other parties. In
respect of loans, investment, guarantees and security the Company has complied with
provision of section 185 and 186 of the Act.
v) The company has not accepted any deposit from public within the meaning of Section
73,74,75 and 76 and clause (v) of Para 3 of the order is not applicable.
vi) We have broadly reviewed the books of account maintained by the Company pursuant to
the rules made by the Central Government for the maintenance of cost records under Section
148(1) of the Act, related to the manufacturing activities, and are of the opinion that
prima facie, the specified accounts and records have been made and maintained. We have
not, however, made detailed examination of the same.
vii) (a) The company is regular in depositing undisputed statutory dues, including
Provident Fund, Employees State Insurance, Income Tax, Sales-Tax, Service Tax, duty of
customs, duty of excise, value added tax, cess and any other statutory dues with
appropriate authorities, where applicable. According to the information and explanations
given to us, there are no undisputed amounts payable in respect of such statutory dues
which have remained outstanding as at 31st March, 2023 for a period of more than six
months from the date they became payable.
(b)According to the records of the company, there are no dues outstanding of
income-tax, sales- tax, service tax, duty of customs, duty of excise and value added tax
on account of any dispute.
viii) 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) The company has not defaulted in repayment of any dues to a financial
institution, bank, and government. The company has not borrowed any amount by way of
debentures.
(b) The Company has not been declared willful defaulter by any bank or financial
institution or government or any government authority.
(c) As observed by us during the Audit and representation made by the company, the
company has used the fund obtained in form of term loans for the object for which they
were obtained.
(d) On an overall examination of the financial statements of the Company, funds raised
on shortterm basis have, prima facie, not been used during the year for long-term purposes
by the Company.
(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 any loans during the year by pledging securities held in
their subsidiaries, joint ventures or associate companies and hence reporting on clause
3(ix)(f) of the Order is not applicable.
x) (a) The Company has not raised moneys 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.
xi) (a) No fraud by the Company and no material fraud on the Company 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) The company has not received any whistle blower complaints during the year (and
upto the date of this report), Hence report under clause 2(xi)(c) of the order is not
applicable.
xii) The company is not a Nidhi Company and hence reporting under clause (xii) of the
Order is not applicable.
xiii) In our opinion, the Company is in compliance with Section 177 and 188 of the
Companies Act, 2013 with respect to applicable transactions with the related parties and
the details of related party 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) 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.
xvi) (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.
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 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.
xx) The provisions of Section 1S5 towards corporate social responsibility are not
applicable on the company. Accordingly, the provisions of clause 3(xx) of the Order are
not applicable.
For N B T and Co
Chartered Accountants Firm Registration No.: 140489W
-Sd-
Ashutosh Biyani
Partner
Membership No. 165017
Place: Mumbai
Place: Mumbai
Date - 25/05/2023
UDIN -23165017BGXEZF3397
+91-9892691696
