To,
The Members of
KUSH INDUSTRIES LIMITED (formerly known as SNS TEXTILES LTD.)
Opinion
We have audited the accompanying standalone financial statements of Kush Industries
Limited (Earlier Known as SNS Textiles Limited) ("the Company"), which comprise
the balance sheet as at 31st March 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 then ended, and summary of the significant accounting policies and other
explanatory information (herein after referred to as "standalone Ind AS financial
statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements, give the information required by the
Companies Act, 2013 in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
a) In the case of the Balance Sheet, of the state of affairs of the Company as at March
31,2023;
b) In the case of the Statement of Profit and Loss, of the Loss for the year ended on
that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing specified under
section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are
further described in the AuditorRss 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 there under, 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.
| Key Audit Matters |
AuditorRss Response |
| Unsecured loan: |
We are unable to form an opinion about the timely repayment of these outstanding
debts. However, management is confident for repayment of the said loan. |
| The Company has not provided the loan agreement in respect of loans availed from
directors and corporate |
|
Information other than the financial statements and auditorsRs report thereon
The CompanyRss board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the BoardRss
Report including Annexures to BoardRss Report, Business Responsibility Report but does not
include the financial statements and our auditorRss report thereon.
Our opinion on the 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 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.
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.
ManagementRss responsibility for the financial statements
The CompanyRss 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 and 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") prescribed 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 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 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 financial statements, management is responsible for assessing the
CompanyRss 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.
AuditorRss Responsibilities for the Audit of the Financial Statements
Our responsibility is to express an opinion on these standalone Ind AS financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance with
the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the standalone Ind AS financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the standalone Ind AS financial statements. The procedures selected
depend on the auditorRss judgment, including the assessment of the risks of material
misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal financial controls
relevant to the CompanyRss preparation of the standalone Ind AS financial statements that
give a true and fair view in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made by the CompanyRss
Directors, as well as evaluating the overall presentation of the standalone Ind AS
financial statements.
We are also responsible to conclude on the appropriateness of managementRss 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 entityRss ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in the auditorRss report to
the related disclosures in the financial statements or, if such disclosures are inadequate
to modify the opinion. Our conclusions are based on the audit evidence obtained up to the
date of the auditorRss report. However, future events or conditions may cause an entity to
cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the standalone Ind AS financial statements.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (AuditorRss Report) Order, 2016 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 A", a statement on the matters specified in paragraphs
3 and 4 of the Order.
2. 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 purpose 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, Statement of Profit and Loss, and Cash Flow Statement dealt with
by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014,
(e) On the basis of written representations received from the directors as on March
31,2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31,2023 from being appointed as a director in terms of Section 164(2) of the
Act.
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
report in Annexure - RsBRs.
(g) With respect to the other matters to be included in the AuditorRss 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 has disclosed the impact of pending litigations on its financial
position in its financial statements - Refer Note - Disclosure as required by AS 29
"Provisions, Contingent Liability and contingent Assets" to the financial
statements.
ii. The Company has not undertaken any long-term contracts including derivative
contracts.
iii. The Company is not required to transfer any amount to Investor Education and
Protection Fund.
ANNEXURE-A TO THE AUDITORRsS REPORT
Referred to in our Report of even date an annexure on the matters specified in
paragraphs 3 and 4 of the CARO on the Statements of Accounts of Kush Industries Limited
(Earlier Known as SNS Textiles Limited) as at and for the Year ended March 31,2023 we
report that:
1. Property, Plant and Equipment
The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
The company has a regular program of physical verification of Property, Plant and
Equipment by the management during the year. The procedure and periodicity of verification
in our opinion is reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies were noticed on such verification.
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties other
than self-constructed immovable property (buildings), as disclosed in fixed assets to the
financial statement, are held in the name of the company except the following:
| Nature of Property |
Total number of cases |
Name in the Lease / Sale Deed |
Gross Block as on 31-03-2023 (Rs in Lakh) |
Net Block as on 31-03-2023 (Rs in Lakh) |
| Land |
01 |
Suzlon Fibres Ltd. |
9.34 |
9.34 |
The property is held in the earlier name of the Company i.e. Suzlon Fibres Ltd., since
procurement. The process of changing to the new name is under study.
2. Inventory
According to the information and explanations to us, the physical verification of
inventories has been conducted at reasonable intervals by the management. No discrepancies
were noticed on physical verification.
3. Loans granted by the company
According to the information and explanations given by the management, the Company has
not granted any loans, secured or unsecured to companies, Firms or other parties.
4. Loans, investments, guarantees and security
In our opinion and according to the information and explanations given to us, the
company has not advanced any loan or given any guarantee or provided any security or made
any investment covered under section 185 and 186 of the Act.
5. Deposits
According to the information and explanations given to us, the Company has not accepted
any deposits as per the directive issued by the Reserve Bank of India and as per the
provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and
the rules framed there under.
6. Cost Records
According to the information and explanations given to us, maintenance of cost records
as specified by the Central Government under sub section (1) of section 148 of the
Companies act is not applicable to the company.
7. Statutory Dues
According to information and explanations given to us and on the basis of our
examination of the books of accounts, the company has been generally regular in depositing
with appropriate authorities undisputed statutory dues including Provident fund,
EmployeeRss State Insurance, Income Tax, Service tax, Sales tax, Goods and Service tax,
Excise duty, Custom duty and other statutory dues.
According to the information and explanation given to us, there were no outstanding
statutory dues as at March 31, 2023 for a period of more than six months from the date
they became payable.
According to the information and explanation given to us and the records of the
company, there are no dues of provident fund, income tax, central sales tax, VAT, excise
duty, service tax, GST and other statutory dues which have not been deposited on account
of any dispute except the following-
| Name of the Statute |
Nature of Dues |
Amount under Dispute (Rs lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Amount deposited against (Rs lakhs) |
| Foreign Trade, 1992 |
Custom Duty / Export Obligation |
Not yet determined |
1997-98 |
Deputy Commissioner of Customs, Raigad, Maharashtra |
21.00 |
| Income Tax Act, 1961 |
Income Tax |
54.49 |
A.Y. 1994-95 |
ITAT, Ahmedabad |
13.63 |
| Income Tax Act, 1961 |
Income Tax |
18.64 |
A.Y. 1996-97 |
ITAT, Ahmedabad |
-Nil- |
| Income Tax Act, 1961 |
Income Tax |
81.64 |
A.Y. 2017-18 |
Commissioner Appeal |
-Nil- |
| Sales tax Act, 1969 |
Sales Tax |
33.00 |
F.Y. 2001-02 |
Joint Commissioner Gujarat Value Added Tax Department |
-Nil- |
The aforesaid legal disputes and resulting liability in some of the cases does not
quantify the amount of interest or penalty vide respective show cause notice or order of
the jurisdictional officer, which may increase the liability eventually when the
respective cases are finally adjudicated.
8. Unrecorded Incomes
According to the information and explanations given to us, the Company did not have any
transaction 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.
9. Repayment of financial dues
According to information and explanations given by the management, the Company has
neither borrowed funds from any financial institutions, banks or government, nor it has
issued debentures till 31st March, 2023. Consequently, in our opinion, the question of
reporting on defaults in repayment of dues to financial institutions, banks, government
and debenture holders does not arise.
10. Public Offer:
According to information and explanation given to us, the company has not raised money
by way of initial public offer or further public offer (including debt instruments) or
obtained term loans during the year.
Based on our audit procedures and as per the information and explanations given by the
management, the company has not made any preferential allotment or private placement of
shares or fully or partly convertible debentures during the year and accordingly the
provision of clause 3(xiv) of the CARO is not applicable to the Company.
11. Fraud
Based on our audit procedure, as per our opinion and according to the information and
explanation given by the management, no fraud by the company or on the company by its
officers or employees has been noticed or reported during the year.
To the best of our knowledge, no report under Section 143 (12) of the Act has been
filed by the auditors in Form ADT- 4 as prescribed under Rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central Government, during the year and up to the date of
this report.
As represented to us by the management, the Company has not received any whistle-blower
complaint during the year and up to the date of this report.
12. Nidhi Company
According to the information and explanations given by the management, the Company is
not a Nidhi company.
13. Related party transactions
According to the information and explanations given by the management 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 and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
14. Internal Audit
According to the information and explanations given to us, in our opinion, the Company
has internal audit system commensurate with the size and nature of its business. And The
reports of the internal auditors for the year under audit, issued to the Company during
the year and till date, have been considered by us.
15. Non-cash transactions
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 him. Accordingly, paragraph 3(xv) of the Order is not
applicable.
16. NBFC company
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.
17. Cash Loss
According to the information and explanations given to us, the Company has incurred
cash losses in the financial year of Rs 8.97 Lacs covered by our audit but in the
immediately previous financial year company had no any cash loss.
18. Resignation of Auditor
According to the information and explanations given to us, there has been no
resignation by the statutory auditors of the Company during the year.
19. Financial Position
According to the information and explanations given to us and on the basis of financial
ratios, ageing and expected dates of realisation of financial assets and payment of
financial liabilities, and Management plans nothing has come to our attention, indicating
that the 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
20. CSR
According to the information and explanations given to us, the company made cash loss
as on 31st March, 2023 therefore the provisions of CSR are not applicable on the Company
in the F.Y. 2022-23
Annexure B:
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 KUSH INDUSTRIES LIMITED (formerly known as
SNS TEXTILES LTD.) as of 31st March 2023 in conjunction with our audit of the standalone
financial statements of the Company for the period ended on that date.
ManagementRss Responsibility for Internal Financial Controls
The CompanyRss 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 (RsICAIRs). 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 companyRss 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.
AuditorsRs Responsibility
Our responsibility is to express an opinion on the CompanyRss 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 ICAI 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 auditorRss judgment, 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 CompanyRss internal financial controls system over
financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyRss 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 companyRss 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 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
companyRss 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 31 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 V H GUNDARWALA & CO., |
|
Chartered Accountants |
| Place: Surat |
(V. H. GUNDARWALA) |
| Date : 03-05-2023 |
PROPRIETOR |
|
M.NO:-046851 |
|
FRN:-113291w |
|
PAN : ABHPG3627M |
|
UDIN : 23046851BGXRHE3283 |
+91-9892691696
