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Evergreen Textiles Ltd.

BSE: 514060 Sector: Industrials
NSE: N.A. ISIN Code: INE229N01010
BSE 00:00 | 08 Nov Evergreen Textiles Ltd
NSE 05:30 | 01 Jan Evergreen Textiles Ltd
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OPEN 13.71
CLOSE 13.71
VOLUME 100
52-Week high 13.71
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Evergreen Textiles Ltd. (EVERGREENTEX) - Auditors Report

Company auditors report

To the Members of

EVERGREEN TEXTILES LIMITED

Report on the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS Financial statements of EVERGREENTEXTILES LIMITED ('the Company') which comprise the Standalone Balance Sheet as at31st March 2021 the Standalone Statement of Profit & Loss (including OtherComprehensive income) Statement of Changes in Equity and the Cash Flow Statement for theyear ended 31st March 2021 and a summary of the significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the

Companies Act 2013("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2021 and its loss the changes inequity 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 Standalone FinancialStatements section of our Report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the independence requirements that are relevant to our audit of the standalonefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

Emphasis of Matter

We draw your attention to the Note 21 to the Note to accounts forming part ofstandalone financial statements which describes the management's assessment of the impactof the outbreak of Coronavirus (COVID-19) on the business operations of the Company. Themanagement believes that no adjustments are required in the standalone financialstatements as it does not impact the current financial year however in view of thevarious preventive measures taken (such as complete lock-down travel restrictions etc.)and highly uncertain economic environment a definitive assessment of the impact on thesubsequent periods is highly dependent upon circumstances as they evolve. Our opinion isnot modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined that there are no key audit mattersto communicate in our report.

Information other than the financial statements and auditor's report thereon

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the standalone financial statements and our auditors'report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of the Stateof affairs profit/loss including other comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under section 133 ofthe Act. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of accounting records relevant to the preparation and presentation of thestandalone Ind AS financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements the management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the company or tocease operations or has no realistic alternative but to do so. The Board of Directors isalso responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone financial statements.

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

? Identify and assess the risks of material misstatement of the Standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

? Obtain an understanding of internal financial control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

? Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

? Evaluate the overall presentation structure and content of the Standalone financialstatements including the disclosures and whether the Standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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

As required by 'the Companies (Auditor's Report) Order 2016' ("The CARO Order2016") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the 'Annexure A' a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

A. 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 ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) The Standalone Balance Sheet the Statement of Profit &Loss (including Other Comprehensive Income) the Cash Flow Statement and the Statement ofChanges in Equity dealt with by this report are in agreement with the books of account; d)In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended; e) On the basis of the writtenrepresentations received from the Directors as on 31st March 2021 and taken on record bythe Board of Directors none of the Directors is disqualified as on 31st March 2021 frombeing appointed as a Director in terms of Section 164 (2) of the Act; f) With respect tothe adequacy of the internal financial control over financial reporting of the Companywith reference to these standalone Ind AS financial statements and the operatingeffectiveness of such controls refer to our separate report in 'Annexure B' to thisreport; B. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous: i. The Company has disclosed the impact if any of pending litigations on itsfinancial position in its standalone Ind AS financial statements; ii. The Company does nothave any long term contracts including derivative contracts as at 31st March 2021 hencethe question of commenting on any material foreseeable losses thereon does not arise. iii.There has not been an occasion in case of the Company during the year ended

31st March 2021 to transfer any sums to the Investor Education and Protection Fund.The question of delay in transferring such sum does not arise. iv. The reporting ondisclosures relating to Specified Bank Notes is not applicable to the Company for the yearended 31st March 2021. C. With respect to the matter to be included in theAuditors' Report under Section 197(16) of the Act: In our opinion and according to theinformation and explanations given to us the remuneration paid by the Company to itsdirectors during the current year is in accordance with the provisions of Section 197 ofthe Act. The remuneration paid to any director is not in excess of the limit laid downunder Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed otherdetails under Section 197(16) which are required to be commented upon by us.

Annexure "A" to the Independent Auditor's Report on the standalone financialstatements of Evergreen Textiles Limited.

With reference to the Annexure A referred to in the Independent Auditors' Report to themembers of the Company on the standalone financial statements for the year ended 31 March2021 we report the following:

i. In case of Fixed Assets:

(a) As informed the Company does not have any Fixed Assets and hence reporting underclause (i) of the CARO Order 2016 is not applicable to the Company.

(b) According to information and explanation given to us and the records of the companyexamined by us the Company does not have any immovable properties during the year.Accordingly reporting under clause 3 (i) (c) is not applicable to the company.

ii. As informed the Company does not have any inventory and hence reporting underclause (ii) of the CARO Order 2016 is not applicable to the Company.

iii. According to information and explanation given to us the company has not grantedany loan secured or unsecured to companies firms limited liability partnerships orother parties covered in the register required under section 189 of the Companies Act2013.

iv. In our opinion and according to the information and explanations given to us the

Company has complied with the provisions of Section 185 and 186 of the Act withrespect to the loans given investments made guarantees and securities given.

v. The company has not accepted any deposits from the public within the meaning of

section 73 to 76 of the Act and the Rules framed there under to the extent notified andaccordingly clause 3 (v)of the order is not applicable.

vi. The Central Government of India has not prescribed the maintenance of cost recordsunder sub-section (1) of section 148 of the Act for any of the activities of the companyand accordingly clause 3 (vi) of the order is not applicable.

vii. In respect of statutory dues:

(a) According to the information and explanations given to us and the records of thecompany examined by us in our opinion the Company has generally been regular indepositing all its undisputed statutory dues including Provident fund Employees' StateInsurance Income Tax Sales Tax Service Tax Custom duty Excise duty Value Added TaxGoods & Service Tax Cess and Other Material Statutory dues applicable to it to theappropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident fund Employees'State Insurance Income Tax Sales Tax Service Tax Custom duty Value Added Tax Goods& Service Tax Cess and Other Material Statutory dues in arrears as at 31st March2021 for a period of more than six months from the date they become payable exceptExcise duty of Rs. 16424282/- (Previous Year Rs. 16424282/-) penalty of Rs100000/- (previous year Rs. 100000/-) and relevant amount of non-quantified interestthereon for the period from 1987 - 2000.

(c) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of Income tax and Service Tax which have notbeen deposited on account of any dispute. The particulars of dues of Excise duty &Sales Tax including Value Added Tax as at 31st March 2021 which have not been depositedon account of a dispute are as follows :

Sr. no. Name of the Statute Nature of Dues Amount (Rs in Lakhs) Period to which the amount relates Forum where dispute is pending
1. Central Excise Excise Duty Interest & Penalty 428.26 Aug 1996 to July 1998 Appelate Tribunal (CESTAT)
2. Sales Tax Sales Tax & Interest 1.76 1994-95 Sales Tax Tribunal
3. Sales Tax Sales Tax & Interest 13.43 1995-96 Sales Tax Tribunal
4. Sales Tax Sales Tax & Interest 0.10 1997-98 Sales Tax Tribunal
5. Sales Tax Sales Tax & Interest 0.30 1998-99 Sales Tax Tribunal
6. Sales Tax Sales Tax & Interest 2.06 1999-2000 Sales Tax Tribunal
7. Sales Tax Sales Tax & Interest 0.20 2000-01 Sales Tax Tribunal
8. Sales Tax Sales Tax & Interest 0.50 1994-95 Sales Tax Tribunal
9. Sales Tax Sales Tax & Interest 0.10 1995-96 Sales Tax Tribunal

viii. In our opinion and according to the information and explanations given to usthe

Company did not have any outstanding dues to financial institutions banks orgovernment. The Company has not issued any debentures during the year. ix. In our opinionand according to the information and explanations given to us the

Company has not raised any money by way of initial public offer or further public offer(including debt instruments) and has not taken any term loans during the year.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practice in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the company or on the company by its officers or employeesnoticed or reported during the year nor have been informed of any such case by themanagement.

xi. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or no material fraud on the Company by its officersor employees has been noticed or reported during the year.

xii. As per the information and explanations given to us and based on examination ofthe records of the Company the Company has not paid any managerial remuneration duringthe year.

xiii. In our opinion and according to the information and explanations given to us the

Company is not a Nidhi Company and accordingly paragraph 3 (xii) of the order is notapplicable to the Company.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable the details of suchtransactions have been disclosed in the financial statements as required by the IndianAccounting Standard (Ind AS) 24 Related Party Disclosures specified under section 133 ofthe Act.

xv. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xvi. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into non- cashtransactions with directors or persons connected with them.

xvii. The company is not required to be registered Under Section 45-IA of the ReserveBank of India Act 1934 and hence reporting under clause (xvi) of the CARO Order 2016is not applicable to the Company.

Annexure "B" to the Independent Auditor's Report on the standalone financialstatements of Evergreen Textiles Limited

(Referred to in paragraph under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Clause (i) of Sub-section 3 of Section 143 ofthe Companies Act 2013.

We have audited the internal financial controls with reference to Standalone FinancialStatements of Evergreen Textiles Limited ("the Company") as of 31st March2021 in conjunction with our audit of the standalone financial statements of the Companyfor the 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 internal controls over financial reportingcriteria established by the Company considering the essential components of internalcontrols stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting 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 the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information 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 Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India andthe standards on auditing prescribed under Section 143 (10) of the Companies Act 2013 tothe extent 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 were 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatements in the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial control system over financialreporting.

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 (i) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (ii) 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 authorizations ofmanagement and directors of the company; and (iii) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

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 of override 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 according to the information and explanations given to us theCompany has in all material respects an adequate internal financial control system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31st March 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For R. K. KHANDELWAL & CO.

Chartered Accountants

(Firm Registration No.: 105054W)

(R. K. KHANDELWAL)

PARTNER

Membership No. 030054

UDIN: 21030054AAAAAS1248

Place: Mumbai

Date: 29/06/2021

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