You are here » Home » Companies » Company Overview » GTN Textiles Ltd

GTN Textiles Ltd.

BSE: 532744 Sector: Industrials
NSE: GTNTEX ISIN Code: INE302H01017
BSE 00:00 | 27 Mar 7.54 0
(0.00%)
OPEN

7.54

HIGH

7.54

LOW

7.54

NSE 00:00 | 03 Apr 6.00 0
(0.00%)
OPEN

5.95

HIGH

6.00

LOW

5.70

OPEN 7.54
PREVIOUS CLOSE 7.54
VOLUME 1
52-Week high 10.45
52-Week low 4.77
P/E
Mkt Cap.(Rs cr) 9
Buy Price 7.57
Buy Qty 24.00
Sell Price 7.54
Sell Qty 7501.00
OPEN 7.54
CLOSE 7.54
VOLUME 1
52-Week high 10.45
52-Week low 4.77
P/E
Mkt Cap.(Rs cr) 9
Buy Price 7.57
Buy Qty 24.00
Sell Price 7.54
Sell Qty 7501.00

GTN Textiles Ltd. (GTNTEX) - Auditors Report

Company auditors report

To the Members of GTN Textiles Ltd

Report on the Standalone Financial Statements

Opinion

(i) We have audited the accompanyingfinancialstatements of GTN Textiles Ltd (the"Company") which comprise the Balance Sheet as at 31st March 2019 theStatement of Profit and Loss (including Other Comprehensive Income) Statement of Changesin Equity and the Statement of cashflows for the year then ended and notes to thefinancial statements including a summary of the significant accounting policies and otherexplanatory referred to as "Standalone Ind AS financial statements").

(ii) In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Ind AS financial statements for theyear ended 31st March 2019 give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the company as at 31st March2019 Loss statement of changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion:

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for 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.

Sr. No. Key Audit Matters Auditor's Response
1 Conversion of Non Current Assets to Stock-in-Trade We have verified minutes and other related internal
The Management has decided to convert portion of land in Aluva as stock-in-trade after ascertaining its present market value. documents for understanding the intent of the management for the classification and the same are in accordance Ind AS 2
Total Land valued 1188.60 Ares or 29.37 Acres of land situated at Aluva and its Present Market Value is Rs. 954534945/- and only a portion of property comprising of 1.23 Acres of land valuing Rs. 39974152 has been converted into stock-in-trade We have verified the disclosures made in this regard in accordance with Ind AS 2.
The details of the same has been provided in Note 2.11
2. Guarantee for loans given to Patspin India Ltd(Associate) Our audit procedures on Guarantee for loans given to Patspin India Ltd included
The company has given guarantee of Rs. 300 Lakhs for the loans taken by Patspin india Ltd under restructured TUF scheme from EXIM Bank also the company has not charged any commission for the same (i) An Enquiry for not charging commission-Management informed us that commission has not been charged as Patspin is an associate of GTN and it has substantial interest in the undertaking
(ii) We observed that as on 31.03.2019 default in payment was made by Patspin India Ltd for Quarter IV regarding the loans for which guarantee given by GTN also the same remains unpaid as on the date of report.
(iii) We have also verified the transaction in essence of section 185 and 186 of Companies Act 2013.

Responsibility of Management and Those Charged with Governance for the Ind AS FinancialStatements

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 financial statements that give a true and fair view of the financial positionfinancial performance changes in equity and cash flows in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards(Standalone) specified under section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgements 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 accounting records relevant to the preparationand presentation of the Ind AS financial statements that give a true and fair view and arefree from material misstatement whether due 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 the Company's financialreporting process.

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

(i) 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 a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud 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.

(ii) 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) Obtain an understanding of internal control relevant to the audit in order todesign 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 whetherthe Company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

(d) 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 uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the financial statementsor if such disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. However futureevents or conditions may cause the Company to cease to continue as a going concern.

(e) Evaluate the overallpresentationstructureandcontentofthefinancialstatementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

(iii) Materiality is the magnitude of misstatements in the Standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the financial statements.

(iv) We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control our audit.

(v) We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements:

1 As required by 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 Companies Act 2013 we give in "Annexure - A" a statement on the mattersspecified in paragraphs 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 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 Sheet the Statement of Profit and Loss (Including Other ComprehensiveIncome) Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport 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 the Companies(Indian Accounting Standards) Rules 2015 as amended.

e) On the basis of written representations received from the directors as on 31st March2019 taken on record by the board of directors none of the directors are disqualified ason 31st March 2019 from being appointed as directors in terms of section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialscontrols with reference to financial statements.

g) In our opinion According to the information and explanations given to us and basedon our examination of the records of the company the Company has paid/provided formanagerial remuneration for the year ended on March 31 2019 has paid/provided by theCompany to its directors in accordance with the provisions of the section 197 of the Actread with Schedule V to the Act.

h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company did not have any pending litigations on its financial position.financial statements its Standalone

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For L. U. Krishnan& Co.
Chartered Accountants
FRN – 001527S
P. K. Manoj
Place: Kochi Partner
Date: May 212019 Membership No.207550

Annexure - A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the Standalone financial statements for the year ended 31 March 2019 we report that:

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

(b) The Property Plant and Equipment have been physically verified by the Managementat reasonable intervals in accordance with regular programme of verification. According tothe information and explanations given to us no material discrepancies were noticed onsuch verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties asdisclosed in Note 3 are held in the name of the Company.

(ii) During this year Inventories has been physically verified by the Management andthere were no material discrepancies were noticed during such verification

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to any company firm Limited LiabilityPartnership or other parties listed in the register maintained under section 189 of theCompanies Act 2013 (‘the Act'). Accordingly clauses from (iii) (a) to (iii) (c) ofparagraph 3 of the Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act. with respectto the loans investments guarantees and security.

(v) According to the information and explanations given to us the Company has notaccepted deposits and does not have any unclaimed deposits within the meaning of Section73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of the clause 3 (v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the company pursuantto rules prescribed by the Government of India for maintenance of cost records undersub-section (1) of section 148 of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records.

(vii) a) According to the information and explanations given to us and according to therecords as produced and examined by us in our opinion the Company is regular is indepositing with appropriate authorities the undisputed statutory dues including incometax sales tax service tax value added tax goods and service tax customs duty exciseduty cess and other material statutory dues applicable to it and there are no arrears ofoutstanding statutory dues as at 31st March 2019 for a period of more than six monthsform date they become payable.

b) According to the information and explanations given to us there were no dues in ofwhich have not been deposited on account of dispute and the same being contested by thecompany.

(viii) According to the information and explanations given by the management we are ofthe opinion that the Company has not defaulted in repayment of dues to a financialinstitution bank and government. The Company has not issued any debentures during theyear and does not have any outstanding dues in respect of debenture holders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(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 ouraudit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions of thesection 197 of the Act read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) 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 sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) 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 of fully or partly convertible debentures duringthe year.

(xv) 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 him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For L. U. Krishnan& Co.
Chartered Accountants
FRN – 001527S
P. K. Manoj
Place: Kochi Partner
Date: May 212019 Membership No.207550

Annexure - B to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference to financial statementsof GTN Textiles Ltd ("the Company") as at 31st March 2019 in conjunction withour audit of the financial statements of the Company for the year ended and as at on thatdate

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria 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 (‘ICAI'). 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 Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to financial statements was established and maintainedand if such controls operated effectively in all material respects. Our audit involvesperforming procedures to obtain audit evidence about the adequacy of the internalfinancial controls system with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financialcontrols withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment 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 our audit opinion on the Company's internal financial controls systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements reporting

A company's internal financialcontrol with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that(1) Pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company;(2) Provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialaccordance 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 (3) 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.

Inherent Limitations of Internal Financial Controls with reference to financialstatements reporting

Because of the inherent limitations of internal financialcontrols with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as at31st March 2019 based on the internal control with reference to financial statementscriteria 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.

For L. U. Krishnan& Co.
Chartered Accountants
FRN – 001527S
P. K. Manoj
Place: Kochi Partner
Date: May 212019 Membership No.207550