Super Fine Knitters Ltd Auditor Reports

TO THE MEMBERS OF
SUPER FINE KNITTERS LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Super Fine Knitters Limited, which comprise the
Balance Sheet as at 31 March 2025, the Statement of Profit and Loss and Statement of Cash Flows for the year
then ended, and notes to the financial statements, including a summary of significant accounting policies and other
explanatory information.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the
company as at 31 March 2025, and of its financial performance and its cash flows for the year then ended in
accordance with the with the accounting principles generally accepted in India.

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. 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), 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 opinion.

Managements Responsibility for the Financial Statements

The companys Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act,
2013, 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 the accounting principles
generally accepted in India, including the Accounting Standards 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 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 financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

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 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 control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also
responsible for expressing our opinion on whether the company has adequate internal financial controls with
reference to financial statements 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.

Report on Other Legal and Regulatory Requirements

1. 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 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, except for the non-activation of the audit trail in the
accounting software.

c. The Balance Sheet, the Statement of Profit and Loss, and the 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 the Accounting Standards prescribed under
section 133 of the Act.

e. On the basis of the written representations received from the directors as on 31 March 2025, taken on
record by the Board of Directors, none of the directors are disqualified as on 31 March 2025 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".

g. 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, 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;

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. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 (g)
of the Companies (Audit and Auditors) Rules, 2014, Based on our examination which included test
checks, the company has used an accounting software for maintaining its books of account which has
a feature of recording audit trail (edit log) facility and the same has operated from 1^st April 2024
onwards and after that operated throughout the year for all relevant transactions recorded in the

software. Further, during the course of our audit we did not come across any instance of audit trail
feature being tampered with.

2. As required by the Companies (Auditors Report) Order, 2020 ("the Order") 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 B" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.

"Annexure A" to the Independent Auditors Report of even date on the Financial Statements of SUPER
FINE KNITTERS LIMITED

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 SUPER FINE KNITTERS LIMITED ("The
Company") as of March 31, 2025 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 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") 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 amount the adequacy of the internal financial
control system over financial reporting and their operating effectiveness. Our audit of internal financial controls over
financial reporting, assessing the risk that a material weakness exists, and operating effectiveness of internal
control based on the assessed risk. The procedures selected depend upon 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 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 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
31,2025, 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 issues by the Institute of Chartered Accountants of India.

ANNEXURE "B" 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 SUPER FINE KNITTERS LIMITED of even date)

On the basis of the information and explanation given to us during the course of our audit, we report that:

(i) a) (A) The Company has maintained proper records showing full particulars, including quantitative details

and situation of all fixed assets.

(B) The Company has maintained proper records showing full particulars of Intangible Assets.

b) Pursuant to the companys programme of verifying fixed assets in a phased manner, physical verification
of fixed assets was conducted during the year. According to the information and explanations given to us,
no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us there is no such case where any immovable
properties, classified as fixed assets, are not held in the name of the company.

d) According to the information and explanations given to us the company has not revalued its Property,
Plant, and Equipment during the year. Therefore, the provisions of Clause (i)(d) of paragraph 3 of the
order are not applicable to the company

e) According to the information and explanations given to us no proceedings have been initiated or are
pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Therefore, the provisions of Clause (i)(e)
of paragraph 3 of the order are not applicable to the company.

(ii) a) According to the information and explanations given to us, physical verification of inventory has been

conducted at reasonable intervals by the management and the coverage and procedure of such
verification by the management are appropriate. No material discrepancies were noticed on such
verification.

b) According to the information and explanations given to us the company has been sanctioned working
capital limits of less than Rs. 5.00 crores. Accordingly, the requirements under paragraph 3(ii)(b) of the
Order is not applicable to the company.

(iii) According to the information and explanations given to us the company has not granted any loan, secured or
unsecured to companies, firms, Limited Liability Partnerships, or other parties covered in the register
maintained under section 189 of the Companies Act 2013. Accordingly, the provisions of clause 3 (iii) (a), (b)
and(c) of the Order are not applicable to the Company.

(iv) According to the information and explanations given to us and on the basis of representations of the
management which we have relied upon, the loans given by the company during the financial year 2024-25 are
in compliance with the provisions of Section 185 and Section 186 of the Companies Act, 2013.

(v) According to the information and explanations given to us, the Company has not accepted deposits from the
public in terms of provisions of sections 73 to 76 of the Companies Act, 2013 therefore reporting under this
clause is not applicable.

(vi) As per information and explanations given to us, the Company is not required to maintain cost records
pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section
(1) of section 148 of the Companies Act, 2013.

(vii) a) According to the information and explanations given to us and the records of the Company examined by

us, in our opinion, the Company has been generally regular in depositing statutory dues as applicable,
with the appropriate authorities like ESI, Provident Fund and GST except Labour Welfare Fund .
However, there are no statutory dues that are outstanding as of March 31, 2025, for a period of more than
six months except Labour welfare fund.

b) According to the information and explanations given to us and according to the records of the Company,
there are no disputed statutory dues outstanding on the company as on 31.03.2025.

(viii) In our opinion and according to the information and explanations given to us, there is no transaction that have
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 (43 of 1961) that is not recorded in the books of account

(ix) a) According to the records of the Company examined by us and the information and explanations given to

us, the Company has not obtained any loans from the financial institution and debenture holders therefore
reporting of repayments of such loans under this clause is not applicable.

b) In our opinion and according to the information and explanations given to us, the company has not been a
declared wilful defaulter by any bank or financial institution or other lender.

c) In our opinion and according to the information and explanations given to us, the loans were applied for
the purpose for which the loans were obtained.

d) In our opinion and according to the information and explanations given to us, there are no funds raised on
short-term basis which have been utilised for long-term purposes.

e) In our opinion and according to the information and explanations given to us, 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) In our opinion and according to the information and explanations given to us, the company has not raised
loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate
companies.

(x) According to the information and explanations given to us, on an overall basis, the company has not raised any
money by way of initial public offer or further public offer including debt instruments

(xi) a) According to the information and explanations given to us and on the basis of representation of the

management which we have relied upon, no fraud by the Company or on the company by its officers or
employees has been noticed or reported during the year.

b) During the year no report under sub-section (12) of section 143 of the Companies 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. c) As auditors, we did not receive any whistle-blower complaints during the
year.

(xii) Since the company is not a Nidhi company, therefore this clause is not applicable.

(xii) According to the information and explanations given to us, all transactions with the related parties are in
compliance with section 177 and 188 of The Companies Act, 2013 as applicable and the details have been
disclosed in the Financial Statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us the company has an internal audit system
commensurate with the size and nature of its business; and the reports of the Internal Auditors for the period
under audit were considered by the statutory auditor;

(xv) According to the information and explanations given to us based on our examination of the record of the
company, the company has not entered into any non cash transactions with directors or persons connected
with him. Therefore the provisions of clause 3(xv) of the order are not applicable.

(xvi) a) According to the information and explanations given to us and based on our examination of the record of

the company, the company is not required to be registered under section 45-IA of the Reserve Bank of
lndia Act, 1934.

b) The company has not conducted any Non-Banking Financial or Housing Finance activities during the year.

c) The company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve
Bank of India.

d) As per the information and explanations received, the group does not have any CIC as part of the group.

(xvii) Based on the overall review of standalone financial statements, the Company has not incurred any cash
losses in the current financial year as well as in the immediately preceding financial year. Hence provisions
stated in paragraph clause 3(xvii) of the Order are not applicable to the company.

(xviii) There has been no resignation of the statutory auditors during the year.

(xix) On the basis of the financial ratios, aging and expected dates of realization of financial assets and payment
of financial liabilities, other information accompanying the financial statements, the auditors knowledge of
the Board of Directors and management plans, we are of the opinion that no material uncertainty exists as
on the date of the audit report that company is 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.

(xx) There is no liability of the company under the provisions of section 135 of the Companies Act, relating to
Corporate Social Responsibility. Therefore, the provisions of Clause (xx) of paragraph 3 of the order are not
applicable to the Company.

(xxi) The company has not made investments in the subsidiary company. Therefore, the company does not
require to prepare a consolidated financial statement. Therefore, the provisions of Clause (xxi) of paragraph
3 of the order are not applicable to the Company.

FOR R.K. DEEPAK & CO.

(Chartered Accountants)

Firm Registration No. 003145N

 

CA SANJIV KHURANA

Partner

M.No.082873

 

Place: Ludhiana

Date: 23-05-2025