To The Members of LORENZINI APPARELS LIMITED
Report on the Audit of the Financial Statements:
Opinion
We have audited the accompanying financial statements of LORENZINI APPARELS LIMITED
("the Company"), which comprise the Balance Sheet as at March 31, 2022, the
Statement of Profit and Loss, 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 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 ("the Act") in the manner so required and give a true and
fair view in conformity with the Accounting Standards prescribed under section 133 of the
Act and other accounting principles generally accepted in India, of the state of affairs
of the Company as at March 31, 2022, the profit and its cash flows for the year ended on
that date.
Basis for opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditors 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 (ICAI) together with the independence requirements that are relevant to our audit of
the financial statements under the provisions of die 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
financial statements.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexure to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the financial statements and our auditors 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 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 reportin this regard.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance and cash flows of
the Company in accordance with die Accounting Standards and other accounting principles
generally accepted in India. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial 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
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.
The Board of Directors are responsible for overseeing the Companys financial reporting
process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
2. 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 internal financial controls system in place and the operating
effectiveness of such controls.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
4. 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 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.
5. Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative file tors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant 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 thefinancial 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
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss and the Statement of Cash Flow
dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid 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 March
31, 2022 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2022 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". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended: In our opinion
and to the best of our information and according to the explanations given to us, 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, as amended 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; as
such 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 under report
to transfer any sums to the Investor Education and Protection Fund.
2. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
Annexure "A" to the Independent Auditors Report
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory
Requirements section of our report to the Members of LORENZINI APPARELS LIMITED of even
date)
Report on the Internal Financial Controls Over Financial Reporting 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 LORENZINI
APPARELS LIMITED ("the Company5) as of March 31, 2022 in conjunction with
our audit of the 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 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 respective 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 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 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 financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls system over
financial reporting of the Company.
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 financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
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 out opinion, to the best of our information and according to the explanations given
to us, 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, 2022, 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.
Annexure UB" to the Independent Auditors Report
(Referred to in paragraph 2 under Report on Other Legal and Regulatory
Requirements1 section of our report to the Members of LORENZINI APPARELS
LIMITED of even date)
1) In case of the Company1 s Property, Plant and Equipments and Intangible
Assets:
(a) 1. According to the information and explanations given to us, the Company has
maintained proper records showing full particulars, including quantitative details and
situation of Property, Plant & Equipment;
2. The Company has maintained proper records showing full particulars of intangible
assets.
(b) The Property, Plant & Equipmenthave been physically verified by the management
in a phased manner which, in our opinion, is reasonable having regard to the size of the
company and nature of its assets. Pursuant to the program, a portion of the fixed asset
has been physically verified by the management during the year and no material
discrepancies between the books records and the physical fixed assets have been noticed.
(c) According to the information and explanations given to us and the records examined
by us and based on the examination of the registered sale deed provided to us, we report
that, the title deeds, comprising all the immovable properties of land and buildings which
are freehold, are held in the name of the Company as at the balance sheet date.
(d) The Company has not revalued any of its Property, Plant and Equipment 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, 2022 for holding any Benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and mles made thereunder.
2) (a) The management has conducted physical verification of inventory at reasonable
intervals during the year, in our opinion, the coverage and procedure of such verification
by the management is appropriate. As informed to us, any discrepancies of 10% or more in
the aggregate for each class of inventory were not noticed on such verification.
(b) The Company has not been sanctioned working capital limits in excess of five crore
rupees (at any point of time during the year), in aggregate, from banks or financial
institutions on the basis of security of current assets. Accordingly, the provisions of
clause 3(ii) of the Order are not applicable.
3) The Company has not granted any loans, secured or unsecured to Companies, firms,
Limited Liability Partnerships or other parties covered in the Register maintained under
Section 189 of the Act. Accordingly, the provisions of clause 3
(iii) (a) to (f) of the Order are not applicable to the Company and hence not commented
upon.
4) 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 Companies Act, 2013
In respect of loans, investments, guarantees, and security.
5) The Company has not accepted deposits during the year and does not have any
unclaimed deposits as at March 31, 2022 and therefore, the provisions of the clause 3 (v)
of the Order are not applicable to the Company.
6) As informed to us, die maintenance of Cost Records has not been specified by the
Central Government under sub-section (1) of Section 148 of the Act, in respect of the
activities carried on by the company. Thus, reporting under clause 3(vi) of the order is
not applicable to the Company.
7) (a) According to information and explanations given to us and on the basis of our
examination of the books of account, and records, the Company has generally been regular
in depositing undisputed statutory dues including Income-Tax, Goods and Services Tax and
any other material statutory dues applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of the above were in arrears as at March 31, 2022 for a period of more
than six months from the date on when they become payable.
(c) According to the information and explanation given to us, there are no dues of
Income Tax, Goods and Services Tax, duty of customs outstanding on account of any dispute.
8) According to the information and explanations given to us and the records of the
Company examined by us, there are no transactions in the books of account that has been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961, that has not been recorded in the books of account.
9) (a) In our opinion and according to the information and explanations given to us,
the Company has not defaulted in the repayment of dues to banks and financial
institutions.
(b) According to the information and explanations given to us and on the basis of our
audit procedures, we report that the Company has not been declared Wilful Defaulter by any
bank or financial institution or government or any government authority.
(c) In our opinion, and according to the information and explanations given to us, the
term loans have been applied, on an overall basis, for the purposes for which they were
obtained.
(d) According to the information and explanations given to us, and die procedures
performed by us, and on an overall examination of the financial statements of the
Company, funds raised on short-term basis have, prima facie, not been used during the
year for long-term purposes by theCompany.
(e) According to information and explanations given to us, and the procedures performed
by us, the company does not have any subsidiaries, joint ventures or associate companies,
there fore reporting under clause 3(ix)(e) and (t) is not applicable to die company.
10) (a) In our opinion, and according to the information and explanations given to us,
the Company has not raised money by way of initial public offer or further public offer.
(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)
11) (a)Based upon the audit procedures performed and the information and explanations
given by the management, we report that no fraud by the Company or on the Company by its
officers or employees has been noticed or reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and upto the date of this report.
(c) The company has not received any whistle blower complaints during the year (and
upto the date of this report).
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of
clause 3 (xii) of the Order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance with
section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the
Financial Statements as required by the applicable accounting standards.
14) (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.
15) Based upon the audit procedures performed and the information and explanations
given by the management, the company has not entered into any non-cash transactions with
directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of
the Order are not applicable to the Company and hence not commented upon.
16) (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) of the
Order is not applicable.
(b) The Company has not conducted non-banking financial / housing finance activities
during the year. Accordingly, the reporting under Clause 3(xvi)(b) of the Order is not
applicable to the Company.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, the reporting under Clause 3(xvi)(c) of
the Order is not applicable to the Company.
(d) 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.
17) The Company has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
18) There has been no resignation of the statu top," auditors of the Company
during the vear.
19) 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 getdischarged by the Company as and when they fall due.
20) The provision of sub-section (5) of Section 135 of the Companies Act, 2013 not
applicable to the company. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not
applicable.
21) The reporting under Clause 3(sxi) of the Order is not applicable in respect of
audit of financial statements. Accordingly, no comment in respect of the said clause has
been included in this report.
|
For Mittal & Associates |
|
Chartered Accountants |
|
Firm Registration number: 106456W |
|
Sd/- |
|
Hemant Bohra |
| Place: Mumbai |
Partner |
| Date: 26th May, 2022 |
Membership number: 165667 |
|
UDIN:22165667AJRFQT2109 |
+91-9892691696
