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Flora Textiles Ltd.

BSE: 530705 Sector: Industrials
NSE: N.A. ISIN Code: INE161F01011
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NSE 05:30 | 01 Jan Flora Textiles Ltd
OPEN 9.67
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VOLUME 200
52-Week high 14.07
52-Week low 5.80
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.67
CLOSE 9.67
VOLUME 200
52-Week high 14.07
52-Week low 5.80
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Flora Textiles Ltd. (FLORATEXTILES) - Auditors Report

Company auditors report

To the Members of M/s. Flora Textiles Limited Report on the Standalone FinancialStatements

Opinion

We have audited the accompanying standalone financial statements of Flora TextilesLimited ("the Company") which comprise the balance sheet as at 31st March 2022and the statement of Profit and Loss (including Other Comprehensive Income) Statement ofChanges in Equity and Statement of Cash Flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information (herein referred to as the Standalone Financial Statements).

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 Act in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2022 and profit and total comprehensive income changes in equityand its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that arerelevantto our audit of the financial statements under the provisions of the CompaniesAct 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

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.

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 financial statements that give a true and fair view of the financialposition financial performance (changes in equity) and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements 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 theCompany’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

a) Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

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

c) Conclude on the appropriateness of management’s use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However future events or conditions may cause theCompany to cease to continue as a going concern.

d) Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or inn aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of the results of our work; and (ii) to evaluate theeffect of any identified misstatements 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 to 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 aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because of 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order tothe extentapplicable.

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 bestof 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 theCompany so far as it appears from our examination of those books. c) The Balance Sheetthe Statement of Profit and Loss (including other comprehensive income) and Statement ofChanges in Equity and the Cash Flow Statement dealt with bythis Report are in agreementwith the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) In terms of Notification no. G.S.R. 463 (E) dt. 05.06.2015 issued by the Ministry ofCorporate Affairs the provisions of Section 164(2) of the Companies Act 2013 in respectof disqualification of directors are not applicable to the Company.

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".

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition

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.

For T.V.SUBRAMANIAN AND ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 007433S
Place: Coimbatore (T.RATHINAVEL)
Date: 30.05.2022 (PARTNER)
M.NO : 025744
(UDIN: 22025744AJWXMZ8793)

Annexure A to the Independent Auditors’ Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the members of Flora Textiles Limited of evendate)

To the best of our information and according the explanations provided to us by theCompany and books of accounts and records examined by us in the normal course of audit westate that:

i. In respect of the Company’s Property Plant and Equipment and Intangibleassets: a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically verifiedby the Management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds provided to us we report thatthe title deeds comprising all the immovable properties of land and buildings which arefreehold are held in the name of the Company as at the Balance Sheet date.

d. The Company has not revalued its Property Plant and Equipment (including Rights ofuse)

e. No proceedings have been initiated or pending against the Company for holding anybenami property under the Benami Transactions (Prohibitions) Act 1988 (45 of 1988) andrules made thereunder

ii. a. The inventories have been physically verified by the management at reasonableintervals during the year. In our opinion the frequency of such verification isreasonable and no discrepancies were noticed at the time of verification.

b. According to the information and explanations given to us and relevant recordsproduces the Company has not been sanctioned any working capital limits from anybanks/financial institutions on the basis of security of assets.

iii. According to the information and explanations given to us the Company has notgranted any loans or advances in the nature of loans secured or unsecured to CompaniesFirms Limited Liability Partnership or other parties listed in the register maintainedunder Section 189 of the Companies Act 2013. Consequently the provisions of Clause (iii)(a-AB) (iii) (b) (iii) (c) (iii) (d). (iii) (e) and (iii) (f) of Paragraph 3 of theorder are not applicable to the company. iv. In our opinion and according to theinformation and explanations given tous the Company has complied with the provisions ofSections 185 and 186 of the Act in respect of grant of loans making investments andproviding guarantees and securities as applicable.

v. According to the information and explanations given tous and based on our auditprocedure the Company has not accepted deposits during the year within the meaning ofsection 73 to 76 of the Act or any other relevant provisions of the Companies Act 2013and the Companies (Acceptance of Deposit) Rules 2014.

vi. The maintenance of cost records has not been specified by the Central Governmentunder Section 148(1) of the Companies Act 2013 for the business activities carried out bythe Company. Thus reporting under Clause 3(vi) of the order is not applicable to theCompany.

vii. According to the information and explanations given to us in respect of statutorydues: a. The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income Tax Goods and ServiceTax Customs Duty Excise Duty Cess and other material statutory dues applicable to itwith the appropriate authorities.

b. There were no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Income Tax Goods and Service Tax Customs Duty ExciseDuty Cess and other material statutory dues in arrears as at March 31 2022 for a periodof more than six months from the date they became payable.

c. The company does not have any disputes in respect of Provident Fund employees stateinsurance income tax sales tax wealth tax service tax customs duty excise dutycess Goods and Service Tax and any other material statutory dues applicable to thecompany. viii. According to the records of the Company examined by us and the informationand explanations given to us no transactions have been recorded in the books of accountswhich have been surrendered or disclosed as income during the year in the tax assessmentsunder the Income-tax Act 1961

ix. According to the records of the Company examined by us and the information andexplanations given to us:

a. The Company has not defaulted in repayment of loans or other borrowings or in thepayment of interest thereon to any lender

b. The Company is not a declared wilful defaulter by any bank or financial institutionor other lender

c. The term loans have been utilized for the purposes for which they were obtained

d. According to the information and explanations given to us and the proceduresperformed by us and on overall examination of the financial statements of the company wereport that the no funds raised on short-term basis have been used for long-term purposesof the company

e. According to the information and explanations given to us and on overall examinationof the financial statements of the company we report that the company has not taken anyfunds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures

f. According to the information and explanations given to us and procedures applied byus we report that the company has not raised any loans during the year on the pledge ofsecurities held in its subsidiaries associates or joint ventures

x. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and hence reporting under Clause 3(x) (a) of the Orderis not applicable to the Company.

xi. a. During the course of our examination of the books and records of theCompanycarried out in accordance with the generally accepted auditing practices in Indiaandaccording to the information and explanations given to us we have neither come acrossany instance of fraud by the Company or on the Company by its officers oremployeesnoticed or reported during the year.

b. No report under sub-section 12 of section 143 of the Companies Act 2013 has beenfiled in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules2014 with the Central Government

c. The company has not received any whistleblower complaints during the year.

xii. The Company is not a nidhi company and hence reporting under Clause 3(xii) of theOrder is not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the CompaniesAct 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

xiv. (a) In our opinion and based on our examination the company has an internal auditsystem commensurate with the size and nature of its business

(b) We have considered the internal audit report of the company issued till date forthe period under audit xv. In our opinion and according to the information andexplanations given to us during the year the Company has not entered into any non-cashtransactions with its directors or persons connected to its directors and hence provisionsof Section 192 of the Companies Act 2013 are not applicable to the Company.

xvi. (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Hence reporting under clause 3(xvi) (a) (b) and (c) ofthe Order is not applicable

(b) In our opinion the Company is not Core Investment Company and hence reportingunder clause 3 (xvi) (b) is not applicable

xvii.The company has not incurred any cash losses in the current year and in theimmediately preceding financial year

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

xix. Based on our examination and the information and explanations given to us withrespect to financial rations ageing and expected dates of realization of financial assetsand payment of financial liabilities other information accompanying the financialstatements and our knowledge of the Board of Directors and management plans no materialuncertainty exists as on the date of audit report that company is capable of meeting itsliabilities existing as on 31st March 2022 as and when they fall due within a period ofone year

xx. According to the records of the company examined by us and the information andexplanations given to us the company is not required to spend any amount towardsCorporate Social Responsibility (CSR)

For T.V.SUBRAMANIAN AND ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 007433S
(T.RATHINAVEL)
Place: Coimbatore (PARTNER)
Date: 30.05.2022 M. NO: 025744

Annexure B to the Independent Auditors’ Report

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the members of Flora Textiles Limited of evendate)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013 (‘the Act’)

We have audited the internal financial controls over financial reporting of FloraTextiles Limited (‘the Company’) as of March 31 2022 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 control over financial reportingcriteria established by the Company considering the essential components 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 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.

Auditor’s 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 CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively 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 procedures selected depend on the auditor’s judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for ouraudit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofthe management and directors of the company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the company’s assets that could have a material effect on the financialstatements.

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 override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controlsover 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2022 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 FinancialControlsOver Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For T.V.SUBRAMANIAN AND ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 007433S
(T.RATHINAVEL)
Place: Coimbatore (PARTNER)
Date: 30.05.2022 M. NO: 025744

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