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Eurotex Industries and Exports Ltd.

BSE: 521014 Sector: Industrials
NSE: EUROTEXIND ISIN Code: INE022C01012
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OPEN 8.11
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VOLUME 87
52-Week high 17.55
52-Week low 8.11
P/E
Mkt Cap.(Rs cr) 7
Buy Price 8.11
Buy Qty 15.00
Sell Price 8.50
Sell Qty 99.00
OPEN 8.11
CLOSE 8.50
VOLUME 87
52-Week high 17.55
52-Week low 8.11
P/E
Mkt Cap.(Rs cr) 7
Buy Price 8.11
Buy Qty 15.00
Sell Price 8.50
Sell Qty 99.00

Eurotex Industries and Exports Ltd. (EUROTEXIND) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

EUROTEX INDUSTRIES AND EXPORTS LIMITED.

Report on the Audit of Financial Statements

We have audited the accompanying financial statements of Eurotex Industries andExports Limited ("the Company") which comprises of Balance Sheet as atMarch 31 2019 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flow for the year then endedand a summary of 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 explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act")in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under Section 133of the Act read with Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 its losses and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theindependence requirements that are relevant to our audit of the financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr. No. Key Audit Matters Auditor's response
Evaluation of Indirect Tax and Other Receivables
The Company has MVAT receivables of र73.19 lakhs for the financial year 2007-08 CENVAT recei-vables in relation to Excise of र9.57 Lakhs for the financial year 2013-14 and MSEB Load Factor Incentives receivables of र 178.03 Lakhs per- taining to financial years from 2005-2008 including matters under dispute which involves significant judgment to determine the possible outcome of these dis- putes. Obtained understanding of key uncertain tax positions.
Obtained details of completed tax assessments and demands for the year ended March 31 2019 from the Management.
Discussed with appropriate senior management and evaluated the Management's underly- ing key assumptions in estimating the tax provi- sion.
Assessed management's estimate of the possible outcome of the disputed cases.
Considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of otherinformation.The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to the Board Report CorporateGovernance report and Shareholder's information but does not include the financialstatement and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

anage ent's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea hue and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with Ind AS andother accounting principles generally accepted in India.This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of hie accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements the Management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

the financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

the audit in order to design audit procedures that are appropriate in thecircumstances. Under Section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial control system in placeand the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the entity's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the entity to cease to continue as a going concern.

the financial statements including the disclosures and whether thefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of a reasonablyknowledgeable user of the financial statements may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scope of our audit work and inevaluating the results of our work and (ii) to evaluate the effect of any identifiedmisstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. Pursuantto the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexuie "A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books and records.

(c) The Balance Sheet the Statement of Profit & Loss (including othercomprehensive income) Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Account) Rules 2014.

(e) On the basis of the written representation received from the directors as on March31 2019 taken on records by the Board of Directors none of the directors aredisqualified as on March 312019 from being appointed as a Director in terms of Section164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure "B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial control overfinancial reporting.

(g) With respect to the other matters to be included in the Auditor's Report inaccordance 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 explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of Section 197 of the Act.

(h) With respect to the matters to be included in the Auditor's report in accordancewith the Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and tothe best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements- Refer Note No. 32.1.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

- SVP & Associates
Chartered Accountants
Firm Regn. No. 003838N
(YOGESH KUMAR SINGHANIA)
Place: Mumbai Partner
Date : 25th May 2019 (M. No. 111473)

"ANNEXURE A"

Annexure "A" referred to in "Report on Other Legal and RegulatoryRequirements" section of our report to the members of Eurotex Industries and ExportsLimited of even date:

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we state that:

i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment (fixed assets).

b) According to the information and explanations given to us the property plant andequipment (fixed assets) have been physically verified by the management at the year endwhich in our opinion is reasonable considering the size of the Company and nature ofitsproperty plant and equipment (fixed assets). As explained no material discrepancieswere noticed on such verification.

c) Based on the information and explanations given to us the title deeds of immovableproperties are held in the name of the Company.

ii) The inventory has been physically verified by the management at reasonableintervals. As per the information and explanation given to us discrepancies noticed onphysical verification between the physical stock and book records were not material.

iii) The Company has not granted any loans secured or unsecured to the Companiesfirms limited liability partnerships or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly The Provision of Clause 3(iii) of the Order arenot applicable to the Companies.

iv) The Company has not granted any loan guarantees and security to the partiescovered in Section 185 of the Act. The provision of Section 186 of the Act have beencomplied in respect of the investments made.

v) No deposits within the meaning of directives issued by RBI (Reserve Bank of India)and Sections 73 to 76 or any other relevant provisions of the Act and rules framedthereunder have been accepted by the Company.

vi) We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government of India regarding the maintenance of costrecords under sub-section (1) of Section 148 of the Act and are of the opinion that primafacie the prescribed accounts and records have been maintained. We have however notmade a detailed examination of the records with a view to determine whether they areaccurate or complete.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records the Company is generally regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income Tax SalesTax Service Tax Duty of Customs Duty of Excise Value Added Tax Cess Goods andService taxes and other material statutory dues applicable to the Company with theappropriate authorities except delay in payment of Provident Fundupto 37 days and amountinvolved र25.16 Lakhs ESIC upto 37 days and amount involved र7.02 lakhs and TDS/TCSupto 45 days and amount involved र11.23 Lakhs (being maximum amount) beside amount yetto be paid aggregating of र53.39 lakhs.

No undisputed amounts in respect of the aforesaid statutory dues were outstanding as atthe last day of the financial year for a period of more than six months from the date theybecame payable.

b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no dues of Income Tax Sales TaxService tax Duty of Customs Duty of Excise and Value Added Tax which have not beendeposited on account of any dispute except the following:

Name of the Statute Nature of dues Period at which it relates Amount र In Lakhs Forum where dispute is ending
The

Custom Act 1962

Cenvat Duty & Penalty 2006-07 131.08 Custom Excise and Service Tax Appellate Tribunal (CESTAT)
M. VAT Act 2002 M. VAT 2005-06 184.38 Maharashtra Sales Tax
Central Sales Tax Act 1956 2006-07 101.59 Tribunal

Mumbai.

viii) In our opinion and according to the information and explanations given to usduring the year the Company has not defaulted in repayment of loans or borrowings tobanks.The Company has not taken loans or borrowings from financial institution andgovernment and alsodo not have any outstanding dues to debenture holder during the year.

ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year or in the recent past and hastaken term loans which were applied for the purpose for which the loans were obtained.

x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

xi) According to the information and explanations given to us and based on theexamination of the records the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

xii) The provisions of Nidhi Company are not applicable to the Company. Therefore Para3 (xii) of the Order is not applicable to the Company.

xiii) According to the information and explanations given to us the provisions ofSection 177 and 188 of Act in respect of transactions with the related parties have beencomplied by the Company and the details have been disclosed in the Ind AS FinancialStatements as required by the applicable accounting standards in Note No.32.5 to the IndAS Financial Statements.

xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Therefore Para 3 (xiv) ofthe Order is not applicable to the Company.

xv) According to the information and explanations given to us during the year theCompany has not entered into any non-cash transactions with directors or persons connectedwith him under Section 192 of the Act.

xvi) The Company is not required to be registered under Section 45 IA of the ReserveBank of India Act 1934.

For SVP & Associates
Chartered Accountants
Firm Regn. No. 003838N
(YOGESH KUMAR SINGHANIA)
Place: Mumbai Partner
Date : 25th May 2019 (M. No. 111473)j

"ANNEXURE B"

An exure "B" referred to in "Report on Other Legal and RegulatoryRequire ents" section of our report to the e ers of Eurotex Industries and ExportsLimited of even date:

Report on the Internal Financial ontrols over Financial Reporting under Clause(i) of u -section 3 of Section 143 of the Companies Act 2013 ("Act")

We have audited the internal financial controls over fi- Eurotex Industries andExports Limited junction with our audit of the financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the interned control over financial reportingcriteria established by the Company considering the essential component of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the Act to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting of Company.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2)provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's 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 financialreporting including the possibility of collusion or improper management over ride ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Company has broadly in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential component of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For SVP & Associates
Chartered Accountants
Firm Regn. No. 003838N
(YOGESH KUMAR SINGHANIA)
Place: Mumbai Partner
Date : 25th May 2019 (M. No. 111473)