SKS Textiles Ltd Auditor Reports

Independent Auditors Report on the Standalone Quarterly and Year to date Audited Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Independent Auditors Report

To

The Board of Directors M/s. SKS Textiles Limited

Report on the audit of the Standalone Annual Financial Results

Opinion

We have audited the accompanying annual financial results of M/s. SKS Textiles Limited (the company) (hereinafter referred to as the "Company") for the quarter and year ended March 31, 2021, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,

2015, as amended ("Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid annual financial results:

I. are presented in accordance with the requirements of Regulation 33 of the Listing

Regulations in this regard; and

II. Give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards, and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information for the quarter and year ended March 31, 2022.

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 ("the Act"). Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Annual Financial Results 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 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 obtained, is sufficient and appropriate to provide a basis for our opinion on the annual financial result.

Based on our review conducted as above and subject to para

a , stated below and notes appended to financial result, nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results prepared in accordance with the applicable Indian Accounting Standards (Ind-AS) prescribed under section 133 of the Companies Act, 2013 read with relevant rules issued there under and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 read with SEBI Circular no. CIR/CFD/FAC/62/2016 dated 5th July, 2016, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Emphasis of Matter

1. We draw attention to note no. 34A to the statements wherein it is stated by the company that

"pursuant to outbreak of corona virus pandemic (covid-19), which developed rapidly into a global crisis and led to a significant impact on the global financial markets and an overall decline in the economic activities all across the world including resultant lockdowns by the governments. The company has used the principles of prudence in applying judgments, estimates and assumptions to assess the potential impact of covid-19 based on prevailing circumstances and expects no significant impact on the continuity of its operations or recoverability of its financial assets or meeting its due liabilities, on long term basis. However, due to the uncertainties associated with the pandemic, the actual impact may not be in line with current estimates and the company will continue to closely monitor any changes to the estimates on the basis of future economic conditions."

2. We draw your attention to note no. 34A of the financial statements for the year ended March

31, 2022 which states that the "Company has filed the legal cases against the major debtors from whom the outstanding receivable amount as on March 31, 2022. All these legal cases are going on as on date of this report and accordingly, Company will monitor these balances on a regular basis based on the proceedings of legal cases."

Company s sales has impacted largely; has incurred net loss during the current year and recoverability of receivables are not certain, considering ongoing legal actions. In absence of sufficient appropriate audit evidence regarding confirm status from the concerned parties, we are unable to comment over the recoverability for the same.

Balances of trade payables, trade receivables, advances received, advances given, GST Liabilities and Income tax (net of Liabilities) are subject to reconciliation and confirmation.

Managements and Board of Directors Responsibilities for the Annual Financial Results

These standalone annual financial results have been prepared on the basis of standalone the annual financial statement.

The Company s Management and the Board of Directors are responsible for the preparation of these financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principal generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the 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 annual financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone annual financial results, the Management and the Board of Directors are responsible for assessing the Company s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company s financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone annual financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s 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 annual financial results.

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 annual financial results, 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

Under Section 143(3) of the Act, we are responsible for expressing our opinion through separate report on the complete set of financial statements on whether the company has adequate internal financial controls with reference to 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 in the financial results made by the Management and Board of Directors.

? Conclude on the appropriateness of the Management and Board of Directors 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 are required to draw attention in our auditor s report to the related disclosures in the annual financial results or, if such disclosures are adequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to date of our auditor s report.

However, future events or conditions may cause the Company to ease to continue as a going concern.

? Evaluate the overall presentation, structure and content of the standalone annual financial results, including the disclosures, and whether the financial results 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 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.

Other Matter

The annual financial results includes the result for the quarter ended March 31, 2022 being the balancing figure between the audited figure in respect of the full financial year March 31, 2022 and the published unaudited year to date figures up to the third quarter of the current financial year which were subject to a limited review by us.

FOR BHATTER & COMPANY CHARTERED ACCOUNTANTS FRN: 131092W UDIN : 22016937AJXBGR3868

MR.DAULAL BHATTER PROPRIETOR MEM NO. : 0169734

Place: Mumbai Date: 30/05/2022

" Annexure A" to the Independent Auditors Report

ANNEXED REFERRED TO PARAGRAPH 1 UNDER THE HEADING REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE ON THE

FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2022 OF "SKS TEXTILES LIMITED".ON THE BASIS OF SUCH CHECKS AS WE CONSIDER APPROPRIATE AND IN THE INFORMATION AND EXPALATION GIVEN TO US, WE STATE THAT:

1. The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. The Fixed Assets have been physically verified by the management periodically in a phased manner and no material discrepancies have been noticed on physical verification as confirmed by the management. Company do not have any immovable property

2. a) The Inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. c)The Company is maintaining proper records of the inventory.

3. The Company has not granted loans to parties covered in the register maintained under Section 189 of the Act.(Previous year Rs.NIL/- ). Further, the Company has not taken loan from any party covered in the register maintained under Section 189 of the Act.

4. In Our opinion and according to the information and explanation given to us, the company has not advanced any loan, given any guarantee or provided any security to any person specified under section 185 of the Act and the company has not made investment through not more than two layers of investment companies as specified under section 186(1) and the company has not given any loan, to any person or other body corporate; given any guarantee or provided security in connection with a loan to any other body corporate or person as specified under section 186(2).

5. In Our opinion and according to the information and explanation given to us, the company has not accepted deposits from the public to which provision of Section 73 to Section 76 of the Companies Act, 2013 or any other relevant provisions of the companies Act and the rules framed thereunder, where applicable except from directors and relatives of directors of the company.

6. According to the information and explanation given to us, the Company has maintained proper cost records as specified under section 148 (1) of the Companies Act, 2013.

7. According to the information and explanation given to us and on the basis of our examination of the books of accounts, the Company is regular in depositing undisputed statutory dues including Provident fund, Employees state insurance, Income Tax, Sales Tax and other statutory dues with the appropriate authorities.

8. The Company has not defaulted in repayment of dues of Financial Institution or banks Debenture holders.

9. According to the information and explanation given to us, the company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loan during the year. Hence the provision of para 3 ix of the order are not applicable.

10. Based upon the audit procedures performed and on the basis of information and explanation provided by the management, we report that no fraud, on or by the Company has been noticed or reported during the year 11. Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act; 12. As per information and records available with us,the company is not Nidhi Company.

13. As per the information and explanation given to us, all transactions entered into by the

Company with the related parties are in compliance with Sections 188 of Act, where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards. 14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore, the provisions of Paragraph 3(xiv) of the Order are not applicable to the Company.

15. The Company has not entered into any non cash transactions with directors or persons connected with him. Therefore, the provisions of Paragraph 3(xv) of the Order are not applicable to the Company.

16. Based on the information and explanation given to us the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.

FOR BHATTER & COMPANY CHARTERED ACCOUNTANTS FRN: 131092W UDIN : 22016937AJXBGR3868

MR.DAULAL BHATTER PROPRIETOR MEM NO. : 016937 Place: MUMBAI

Date: 30/05/2022

"Annexure B" to the Independent Auditors Report of even date on the Financial Statements of

SKS TEXTILES LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the

Companies Act, 2013 ("the Act")

In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March 31, 2022 we have audited the internal financial controls over financial reporting of SKS TEXTILES LIMITED. ("the Company") which is a Company incorporated in India, as of that date.

Management s Responsibility for Internal Financial Controls

The Company s 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 company s 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 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 auditor s 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 Company s 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 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, 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.

FOR BHATTER & COMPANY CHARTERED ACCOUNTANTS FRN: 131092W UDIN : 22016937AJXBGR3868

MR.DAULAL BHATTER PROPRIETOR MEM NO. : 016937

Place: MUMBAI Date: 30/05/2022