To
The Board of Directors,
Spunweb Nonwoven Limited
Survey No.109(2), N.H. 27, Near Wankaner Boundry Post at Jalida, Village Rangpar, Rajkot, Wankaner, Gujarat, India, 363 621, (the Company)
Dear Sirs/ Madams,
1. We have examined the attached Restated Consolidated Financial Information of Spunweb Nonwoven Limited (formerly known as Spunweb Nonwoven Private Limited) (the Company or the Issuer), and its subsidiary Spunweb India Private Limited (the company and its subsidiary together referred to as the Group), comprising of the Restated Consolidated Statement of Assets and Liabilities as at nine months period ended December 31, 2024 and financial year ended March 31, 2024, March 31, 2023, and March 31, 2022, the Restated Consolidated Statements of Profit and Loss for the period ended nine months period ended December 31, 2024 and financial year ended March 31, 2024, March 31, 2023, and March 31, 2022 and the Restated Consolidated Cash Flow Statement for the nine months period ended December 31, 2024 and financial year ended March 31, 2024, March 31, 2023, and March 31, 2022, the Summary Statement of Significant Accounting Policies, and other explanatory information (collectively, the Restated Consolidated Financial Information), as approved by the Board of Directors of the Company at their meeting held on January 25, 2025, for the purpose of inclusion in the Draft Red Herring Prospectus, Red Herring Prospectus and Prospectus (collectively known as the Offer Document) prepared by the Company in connection with its proposed Initial Public Offer of equity shares (SME IPO) prepared in terms of the requirements of:
(a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the Act")
(b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (ICDR Regulations); and
(c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI), as amended from time to time (the Guidance Note).
2. The Companys Board of Directors is responsible for the preparation of the Restated Consolidated Financial Information for the purpose of inclusion in the Offer Document to be filed with Securities and Exchange Board of India, relevant stock exchanges and the Registrar of Companies, Ahmedabad in connection with the proposed SME IPO. The Restated Consolidated Financial Information have been prepared by the management of the Company as per Basis of Preparation paragraph stated in Note 2(i) to the Notes to the Restated Consolidated Financial Information. The Board of Directors responsibility includes designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Restated Consolidated Financial Information. The Board of Directors are also responsible for identifying and ensuring that the Company complies with the Act, ICDR Regulations and the Guidance Note read with SEBI Communication, as applicable.
3. We have examined such Restated Consolidated Financial Information taking into consideration:
(a) The terms of our engagement agreed upon with you in accordance with our engagement letter dated August 16, 2024 in connection with the proposed SME IPO of the Company
(b) The Guidance Note. Further, the Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI;
(c) Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Consolidated Financial Information; and
(d) The requirements of Section 26 of the Act and the ICDR Regulations. Our work was performed solely to assist you in meeting your responsibilities in relation to your compliance with the Act, the ICDR
Regulations and the Guidance Note in connection with the SME IPO
4. These Restated Consolidated Financial Information have been compiled by the management from the audited financial statements of the company as at and for the nine months period ended December 31, 2024 and financial year ended March 31, 2024, March 31, 2023, and March 31, 2022 prepared in accordance with Accounting Standards as prescribed under Section 133 of the Act read with the Companies (Accounting Standards) Rules, 2015 or 2021, as amended, and other accounting principles generally accepted in India, which have been approved by the Board of Directors at their meeting held on January 25, 2025, September 05, 2024, September 23, 2023 and , September 05, 2022 respectively.
5. For the purpose of our examination, we have relied on audit reports issues by us dated January 25, 2025, and September 05, 2024 and statutory audit report issued by Busa & Associates, Chartered Accountants (FRN 122574W), dated September 05, 2023 and September 05, 2022 on the audited financial statements of the Company as at and for the period ended December 31, 2024 and financial years ended March 31, 2024, March 31, 2023 and March 31, 2022 as referred to in Paragraph 4 above.
6. The audit reports on the consolidated financial statements issued by us referred in paragraph 5 did not require any adjustment in the Restated Consolidated Financial Information:
7. As indicated in our reports referred above, in paragraph 5:
a) We have audited the standalone financial statements of the subsidiary as at and for the nine months period ended December 31, 2024 where share of total assets (before consolidation adjustments), total revenues (before consolidation adjustments) and net cash flows inflows / (outflows) (before consolidation adjustments) for all the aforementioned periods have been given in the table below.
(Rs. in lakhs)
Total | Consolidated in Restated Financial | |||||
Financial Period | Total Assets | Total Revenue | Net Cash Flow | Information Total Assets | Total Revenue | Net Cash Flow |
December 31, 2024 | 5,854.72 | 3,384.76 | (0.65) | 5,854.72 | - | - |
8. Based on our examination and according to the information and explanations given to us and also as per the reliance placed on the Audited financial statements submitted by the other auditors or management, as applicable, for the respective years, we report that the Restated Consolidated Financial Information:
a. have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in the financial years ended March 31, 2024, March 31, 2023, and March 31, 2022 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the nine months period ended December 31, 2024;
b. do not require any adjustments for the matters giving rise to matters mentioned in paragraph 6 above; and
c. have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note.
9. The Restated Consolidated Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of the reports on the Audited Consolidated Financial Statements mentioned in paragraph 8 above.
10. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.
11. This report should not in any way be construed as a reissuance or re-dating of any of the previous audit reports issued by us, nor should this report be construed as a new opinion on any of the financial statements referred to herein.
12. We have no responsibility to update our report for events and circumstances occurring after the date of the report. 13. Our report is intended solely for use of the Board of Directors for inclusion in the Offer Documents to be filed with the Securities and Exchange Board of India, relevant stock and Registrar of Companies, Ahmedabad, in connection with the proposed SME IPO, Our report should not be used, referred to, or distributed for any other purpose except with our prior consent in writing. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without our prior consent in writing.
Yours faithfully, | |
For,Kaushal Dave & Associates | Date:January 25,2025 |
Chartered Accountants | Place:Rajkot |
ICAI Firm Registration No 143936W | |
- -SD - - | |
Kaushal V.Dave | |
(Partner) | |
Membership No 174550 | |
UDIN:25174550BMLMPV5905 |
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