Report on the IndAS Financial Statements
We have audited the accompanying Ind AS financial statements of SIDDHESWARI GARMENTS
LTD(“the Company”), which comprise the Balance Sheet as at 31st March, 2023, and
the Statement of Profit and Loss, including Other Comprehensive Income, the Cash Flow
Statement and the Statement of Changes in Equity for the year then ended, and a summary of
the significant accounting policies and other explanatory information.
aforesaid standalone Ind AS financial statements give the information required by the
Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the financial position of the
Company as at 31st March, 2023, and its profit, total comprehensive income, its cash flows
and the changes in equity for the year ended on that date.
Basis of Opinion
We conducted our audit of the standalone Ind AS financial statements 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 Standalone Ind AS 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 Act
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 in sufficient and appropriate to provide a basis for our audit
opinion on the standalone Ind AS financial statements.
Key Audit Matter
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 for the financial
ended March 31, 2023. 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. For each matter below, our
description of how our audit addressed the matter is provided in that context. We have
determined the matters described below to be the key audit matters to be communicated in
our report. We have fulfilled the responsibilities described in the Auditors
responsibilities for the audit of the standalone Ind AS financial statements section of
our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material
misstatement of the standalone Ind AS financial statements. The results of our audit
procedures, including the procedures performed to address the matters below, provide the
basis for our audit opinion on the accompanying standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the
Key Audit Matters |
Auditors Response |
Revenue Recognition |
|
| The timing of revenue recognition is relevant to the reported performance
of the Company. The management considers revenue as a key measure for evaluation of
performance. There is a risk of revenue being recorded before control is transferred. |
Our audit procedures included the following: |
|
o Assessed the Companys revenue recognition accounting policies in line
with Ind AS. |
|
o Tested the effectiveness of such controls over revenue cut off at year
end. |
|
o Compared revenue with historical trends and where appropriate,
conducted further enquiries and testing. |
|
o Assessed disclosures in financial statements in respect of revenue, as
specified in Ind AS. |
We have determined that there are no other key audit matters to communicate in our
report.
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual Report, but does not include
the standalone Ind AS financial statements and our auditors report thereon.
Our Opinion on the standalone Ind AS 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 Ind AS financial statements, our
responsibility is to read the other information and, in doing so, consider whether such
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.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 the Management and Those charged with Governance for the 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
financial position, financial performance including other comprehensive income, cash flows
and changes in equity 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 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 the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgements 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 standalone Ind AS 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 also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility for the Audit of the Standalone Ind AS 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 annual financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone Ind AS
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 controls relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on whether the Company has in place an adequate internal financial
controls system over financial reporting an the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimated 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 exits
related to events or conditions that may cast significant doubt on the ability of the
company to continue as a going concern. If we conclude that a material uncertainty exits,
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.
Evaluate the overall presentation, structure and content of the standalone Ind AS
financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
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 as 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 year ended March 31,2023 and are therefore
the key audit matters. We describe their matters in our auditors report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare
circumstamces, 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 the Companies (Auditors Report) Order, 2016 (“the Order”)
issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Act, we give in
“Annexure A”,
a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
2. As required by Section 143(3) of the Act, based on our audit, we report to the
extent applicable
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 accounts as required by law have been kept by the
Company in electronic mode on server physically located in India, so far as it appears
from our examination of those books.
c) Proviso to rule 3 (1) of the company (Accounts) rule 2014 for maintaining book of
account using accounting software which has a feature of recording audit trail (Edit log)
facility is applicable to the company w.e.f from April 2023 and accordingly reporting
under rule11(g) of companies (Audit and Auditors) rule 2014 is not applicable for the
year.
d) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this
Report are in agreement with the relevant books of accounts.
e) In our opinion, the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards prescribed under Section 133 of the Act, read with relevant rules
issued thereunder.
f) 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.
g) 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 B”. Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
h) 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 explanation
given to us, the remuneration paid by the company to its directors during the year is in
accordance with the provision of Section 197 of the Act.
i) With respect to the other matters to be included in the Auditors Report in
accordance with the 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
for which there were any material foreseeable losses.
(iii) 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,
other than as 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;
(B) The management has represented, that, to the best of its knowledge and belief,
other
than as 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; and
(C) Based on audit procedures which we considered reasonable and appropriate in the
circumstances, nothing has come to their notice that has caused them to believe that
the representations under sub-clause (i) and (ii) contain any material misstatement.
j) The company has not declared or paid any dividend during the year in contravention
of the provisions of section 123 of the Companies Act, 2013.
k) With respect to the matter to be included in the Auditors Report under Section
197(16) of the Act, in our opinion the management remuneration for the year ended
March,31,2023 has been paid/provided by the Company to its directors in accordance with
the provisions of Section 197 Read with Schedule V to the Act
|
For R K BAJAJ & CO Chartered Accountants |
|
FIRM Regn. No. : 314140E |
| Place : Kolkata - 700 001 Dated : 17-05-2023 |
(R K BAJAJ ) |
|
Proprietor |
|
Membership No. 051715 |
Annexure “A” to the Independent Auditors Report
Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements section of our report to the members of Siddheswari Garments Ltd of even
date on the Financial Statements for the year ended 31st March, 2023, we report that:
To the best of our information and according to the explanations provided to us by the
company and the books of account and records examined by us in the normal course of
business, we state that:
[i] In respect of the Companys Property, Plant and Equipment and Intangible Asset:
a) (A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of its Property, Plant and Equipment.
(B) The Company has maintained proper records showing full particulars of intangible
asset.
b) The Company has a program of physical verification to cover all the items of
Property, Plant and Equipment in a phased manner which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets. Pursuant to the
program, certain Property, Plant and Equipment were physically verified by the management
during the year. According to the information and explanations given to us, no material
discrepancies were identified on such physical verification.
c) According to the information and explanations given to us, and on the basis of our
examination of the records provided to us, we report in respect of leasehold land that
have been taken on lease and the lease agreements are in the name of the Company.
d) The Company has not revalued its Property, Plant and Equipment during the year.
e) According to the information and explanations given to us, the company does not hold
any Benami property and hence the Clause is not applicable to this company.
[ii] a) In our opinion, physical verification of inventory has been conducted at
reasonable intervals
by the management and the coverage and procedure of such verification by the management
is appropriate. No material discrepancies were noticed on such verification. b) The
Company has not been sanctioned working capital limits in excess of five crore rupees, in
aggregate, from banks or financial institutions on the basis of security of current assets
at any point during the year. Accordingly, reporting under clause 3(ii)(b) of the Order is
not applicable.
[iii] In our opinion and according to the information and explanations given to us ,the
Company has not made any investments, provided any guarantee or security or granted any
loans or advances in nature of loans, secured or unsecured to companies, firms, Limited
Liability Partnership. Accordingly, reporting under clause 3(iii) (a), (b),(c), (d), (e)
and (f)of the Order are not applicable.
[iv] During the year, the Company has not granted any loans or made any investments, or
provided any guarantee or security to parties covered under section 185 and 186 of the
Act. Accordingly, clause 3(iv) of the said Order is not applicable to the Company.
[v] In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits or deemed to be deposits during the year and
therefore, the provisions of the clause 3(v) of the Order is not applicable to the
Company.
[vi] As explained to us the Central Government has not prescribed maintenance of cost
records under sub-section (1) of section 148 of the Act in respect of any activities of
the Company. Therefore, the provision of Clause 3(vi) of the said Order is not applicable
to the Company.
[vii] (a) According to the information and explanations given to us and on the basis of
our examination the records, the Company is generally regular in depositing undisputed
applicable statutory dues including Goods and Services Tax, provident fund, employees
state insurance, income tax and any other statutory dues to the appropriate authorities
and there are no undisputed dues outstanding as on 31st March, 2023 for a period of more
than six months from the date they become payable.
(b) In our opinion and according to the information and explanations given to us, there
are no statutory dues referred in sub-clause(a) which have not been deposited 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) In our opinion and according to the information and explanations given to us,
the Company has not defaulted in repayment of any loan or other borrowings or any interest
due thereon to any lender.
(b) Based on our examination of the Books of Accounts and other Records of the company
and based on the information and explanation provided by the management, the company has
not been as a wilful defaulter by any bank, financial institution, or any other lender.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not obtained any term loans
during the year. Accordingly, reporting under clause 3(ix)(c) of the Order is not
applicable.
(d) According to the information and explanations given to us, funds raised on short
term basis have not been utilized for long term purposes.
(e) According to the information and explanations given to us and on the basis of our
examination of the records 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, associates
or joint ventures.
(f) The Company has not raised any secured loans during the year. Accordingly,
reporting on clause 3(ix)(f) of the Order is not applicable.
[x] (a) According to the information and explanations given to us, the Company has not
raised moneys by way of initial public offer or further public offer (including debt
instruments). (b) According to the information and explanation given to us, the Company
has not made any preferential allotment or private placement of shares or convertible
debentures (fully, partially or optionally convertible) during the year.
[xi] (a) To the best of our knowledge and according to the information and explanations
given to
us, no fraud by the Company or 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 up to the date of this report.
(c) As auditor neither we nor company did not received whistle-blower did not received
complaints during the year.
[xii] The Company is not a Nidhi Company. Accordingly, reporting under clause 3 (xii)
of the Order is not applicable to the Company.
[xiii] In our opinion and according to the information and explanations given to us,
the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where
applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
[xiv] The Company is not covered by section 138 of the Companies Act, 2013, related to
appointment of internal auditor of the company. Therefore, the company is not required to
appointed any internal auditor. Therefore, the provisions of Clause (xiv) of paragraph 3
of the order are not applicable to the Company.
[xv] In our opinion and according to the information and explanations given to us,
during the year the Company has not entered into any non-cash transactions with its
Directors or persons connected to its directors during the year and hence provisions of
section 192 of the Companies Act, 2013 are not applicable to the Company.
[xvi] (a) In our opinion and 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. Accordingly, reporting under clause 3(xvi) (a), (b) and(c) of the Order are not
applicable.
(b) In our opinion and according to the information and explanations given to us, there
is no core investment company within the Group (as defined in the Core Investment
Companies (Reserve Bank) Directions, 2016).
[xvii] The Company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
[xviii] There has been no resignation of Statutory Auditors of the Company during the
year.
[xix] On the basis of 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 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 will
get discharged by the company as and when they fall due.
[xx] The Company is not required to spend amount in pursuance of the Corporate Social
Responsibility as stipulated under Section 135 of the Companies Act, 2013. Accordingly,
reporting under clause 3(xx)(a) and (b) of the Order are not applicable.
[xxi] The Company is not made investment in subsidiary company. Therefore, the company
does not require to prepare consolidated financial statement. Therefore, the provisions of
Clause (xxi) of paragraph 3 of the order are not applicable to the Company.
Place : Kolkata |
For R K BAJAJ & CO |
Dated : 17-05-2023 |
Chartered Accountants |
|
FIRM Regn. No. : 314140E |
|
(R K BAJAJ ) |
|
Proprietor |
|
Membership No. 051715 |
Annexure ‘B to the Independent Auditors Report
(Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory
Requirements Section of our report 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 SIDDHESWARI
GARMENTSLTD(“the Company”) as of 31st March, 2023 in conjunction with our audit
of the Ind AS 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”) 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
judgement, 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 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 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.
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
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.
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March 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.
Opinion
Place : Kolkata Dated : 17-05-2023
For R K BAJAJ & CO
Chartered Accountants
FIRM Regn. No. : 314140E
(R K BAJAJ )
Proprietor
Membership No. 051715
+91-9892691696
