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Kamadgiri Fashion Ltd.

BSE: 514322 Sector: Industrials
NSE: N.A. ISIN Code: INE535C01013
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NSE 05:30 | 01 Jan Kamadgiri Fashion Ltd
OPEN 62.05
PREVIOUS CLOSE 65.05
VOLUME 90
52-Week high 90.00
52-Week low 37.70
P/E 32.19
Mkt Cap.(Rs cr) 36
Buy Price 0.00
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Sell Price 0.00
Sell Qty 0.00
OPEN 62.05
CLOSE 65.05
VOLUME 90
52-Week high 90.00
52-Week low 37.70
P/E 32.19
Mkt Cap.(Rs cr) 36
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kamadgiri Fashion Ltd. (KAMADGIRIFASH) - Auditors Report

Company auditors report

To

The Members Kamadgiri Fashion Limited

REPORT ON THE AUDIT OF THE STANDALONE IND AS FINANCIAL STATEMENTS

Opinion

We have audited the standalone Ind AS financial statements of KamadgiriFashion Limited (the "Company") which comprise the standalone balance sheet asat March 31 2022 the standalone statement of profit and loss (including othercomprehensive income) the standalone statement of cash flows and the standalone statementof changes in equity for the year then ended and notes to the standalone Ind AS financialstatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as the "standalone Ind AS financialstatements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 as amended (the "Act") in themanner so required and give a true and fair view in conformity with the Indian AccountingStandards prescribed under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended ("Ind AS") and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March312022 its profit (including other comprehensive income) changes in equity and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act("SA"s). Our responsibilities under those Standards are further described in the‘Auditor?s Responsibilities for the Audit of the standalone Ind AS FinancialStatements? section of our report. We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India("ICAI") together with the ethical requirements that are relevant to our auditof the standalone Ind AS financial statements under the provisions of the Act and theRules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI?s Code of Ethics. We believe that theaudit evidence obtained by us is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone Ind AS financial statements forthe financial year ended March 31 2022. These matters were addressed in the context ofour audit of the standalone Ind AS financial statements as a whole and in forming ouropinion thereon and we do not provide a separate opinion on these matters. For eachmatter below our description of how our audit addressed the matter is provided in thatcontext.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor?s responsibilities for the audit of the standalone Ind AS financialstatements section of our report including in relation to this matter. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the standalone Ind AS financial statements. The resultsof our audit procedures including the procedures performed to address the matter belowprovide the basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key Audit Matters
1. Carrying value of Trade Receivables How our audit addressed the key audit matter
The recoverability of Trade Receivables and the level of provisions for doubtful debts are considered to be a significant risk due to the pervasive nature of these balances to the Financial Statements and the importance of cash collection with reference to the working capital management of the business. Our audit procedures included among others the following:
As at March 312022 Trade receivables constitutes approximately 33.94% of total assets of the Company i.e. 5964.59 Lacs. • Revised assessed risk and modify our audit procedures to mitigate these risks;
Expected credit loss involves judgement as it must reflect information about past events current conditions and forecasts of future conditions as well as the time value of money. Management has made provision for expected credit loss of Rs. 13.78 lacs. The company is required to regularly assess the recoverability of its Trade Receivables Hence it is a key audit matter in our audit of standalone Ind AS Financial Statements. • Obtained a reliable assurance pertaining to transactions with confirming parties in sense for accurate and complete
process of routine and significant classes of transactions such as revenue purchases etc.;
• Selected samples and tested the effectiveness of controls related to accuracy and completeness of transactions in totality considering the frequency and regularity of transactions;
• Performed alternative audit procedures like
- For accounts receivable balances: scrutiny of ledger accounts and verification of subsequent receipts;
- For accounts payable balances: scrutiny of ledger accounts and other documents/records such as bills from vendors and subsequent payments.
2. Valuation of Inventories How our audit addressed the key audit matter
The net carrying value of inventory as on 31st March 2022 is 39.15% of total assets of the Company i.e. 6880.48 lacs. Our audit procedures with respect to valuation of inventories included the following:
Sales in the industry can be extremely volatile with the consumer demand changing significantly (Seasonal) based on current trends. As a result there is a risk that the carrying value of inventory exceeds its net Realizable Value. • Evaluating the rationality of Inventory Policies such as the policy of inventory valuation and provision for obsolescence and understanding whether the valuation of inventory was performed in accordance with the Companies Policy.
Hence we have determined valuation of inventories as a Key Audit Matter. • Analyzing the inventory aging report and net realizable value Of Inventories.
• Inspecting the post period sales situation and evaluating the net realizable value of measurement applied on aging inventory in order to verify the evaluation accuracy of the estimated inventory allowance by the company.
• Performed procedures for year-end physical verification count of inventory where quantities counted for selected samples were compared with quantities recorded.
We have also evaluated a section of controls over inventory existence across the company.
3. Revenue Recognition How our audit addressed the key audit matter
Revenue is an important measure used to evaluate the performance of the company. There is a risk that the revenue is presented for amounts higher than what has been actually generated by the company. Our audit procedures with respect to Revenue recognition included the following:
Consequently We Considered Revenue Recognition to be a Significant Key Audit Matter. • Inspecting underlying documentation for any book entries which were considered to be material on a sample basis.
• Inspecting the key terms and conditions of agreements with major customers on a sample basis to assess if there were any terms and conditions that may have affected the accounting treatment of the revenue recognition.
• The accuracy and completeness of revenue was verified through Cut-Off testing and Analytical Reviews.
Assessing the design implementation existence and operating effectiveness of Internal Control Procedures implemented as well as test of details to ensure accurate processing of Revenue Transactions.

Information Other than the Financial Statements and Auditor?sReport Thereon

The Company?s Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board?s Report including Annexures to Board?s ReportBusiness Responsibility Report Corporate Governance Report and Shareholder?sInformation but does not include the standalone Ind AS financial statements and ourauditor?s report thereon.

Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the standalone Ind ASfinancial statements or our knowledge obtained during the course of our audit orotherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management?s Responsibilities for the standalone Ind AS FinancialStatements

The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standaloneInd AS Financial Statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income changes in equity and cashflows of the Company in accordance with the Ind AS and other accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone Ind AS Financial Statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the standalone Ind AS Financial Statements management isresponsible for assessing the Company?s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative 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 standalone Ind ASFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS Financial Statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor?s report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Ind AS FinancialStatements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone Ind AS 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.

• Obtain an understanding of internal financial control relevantto 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 controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the standalone Ind AS Financial Statements or ifsuch disclosures are inadequate to modify our opinion. Our conclusions are based on theaudit 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.

• Evaluate the overall presentation structure and content of thestandalone Ind AS Financial Statements including the disclosures and whether thestandalone Ind AS Financial Statements represent the underlying transactions and events ina manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regardingstandalone Ind AS Financial Statements of the Company to express an opinion on the same.

Materiality is the magnitude of misstatements in the standalone Ind ASFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone Ind AS FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone Ind ASFinancial Statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalone IndAS Financial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor?s report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

c) The standalone balance sheet the standalone statement of profit andloss including other comprehensive income standalone statement of changes in equity andthe standalone statement of cash flows dealt with by this report are in agreement with therelevant books of account.

d) In our opinion the aforesaid standalone Ind AS financial statementscomply with the Ind AS specified under Section 133 of the Act read with relevant ruleissued there under to the extent applicable to the Company.

e) On the basis of the written representations received from thedirectors as on March 312022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312022 from being appointed as a director in termsof Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company?s internalfinancial controls over financial reporting.

g) With respect to the other matters to be included in theAuditor?s Report in accordance with the requirements of section 197(16) of the Actas amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS Financial Statements. Refer Note 35 to thestandalone Ind AS financial statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the company.

iv. a) The management has represented that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other persons or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of thecompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

b) The management has represented that to the best of its knowledgeand belief no funds have been received by the Company from any persons or entitiesincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries; and

c) Based on such audit procedures that were considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) contain any materialmisstatement.

v. The company has neither declared nor paid any dividend during theyear. Hence reporting the compliance with section 123 of the Act is not applicable.

2. As required by the Companies (Auditor?s Report) Order 2020("the Order") issued by the Central Government in terms of

Section 143(11) of the Act we give in "Annexure B" astatement on the matters specified in paragraphs 3 and 4 of the Order.

ANNEXURE "A" TO THE INDEPENDENT AUDITOR?S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements? section of our report to the Members of Kamadgiri FashionLimited of even date)

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

We have audited the internal financial controls over financialreporting of KAMADGIRI FASHION LIMITED (the "Company") as of March 31 2022 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date. Management?s Responsibility for Internal FinancialControls

The Company?s Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to therespective company?s policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditor?s Responsibility

Our responsibility is to express an opinion on the Company?sinternal financial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the ICAI 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 was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor?s judgment including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system over financial reporting with reference to standalone financialstatements.

Meaning of Internal Financial Controls With Reference to Standalone IndAS Financial Statements

A company?s internal financial control with reference tostandalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation ofstandalone Ind AS financial statements for external purposes in accordance with generallyaccepted accounting principles. A company?s internal financial control with referenceto standalone Ind AS financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone Ind AS financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of the management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company?s assets that could have a materialeffect on the standalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2022 based on theinternal financial control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India

Annexure ‘B? to the Independent Auditor?s Report

(Referred to in Paragraph 2 under the heading of "Report on otherLegal and Regulatory Requirements" of our report to the members of Kamadgiri FashionLimited of even date)

Report on the Companies (Auditor?s Report) Order 2020 withreference to standalone Ind AS financial statements issued in terms of Section 143(11) ofthe Companies Act 2013 ("the Act") of the Kamadgiri Fashion Limited ("theCompany"):

In terms of the information and explanations sought by us and given bythe Company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that:

i. In respect of company?s property plant and equipment:

(a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.

(B) The Company has maintained proper records showing full particularsof intangibles assets.

(b) The Company has a regular program of physical verification of itsproperty plant and equipment (PPE) right of use assets and investment property underwhich the assets are physically verified in a phased manner over a period of three yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. In accordance with this program certain property plant andequipment right of use assets and investment property were verified during the year andno material discrepancies were noticed on such verification.

(c) According to the information and explanations given by themanagement the title deeds of all the immovable properties included in property plantand equipment (other than properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee) are held in the name of the Company.

(d) The Company has not revalued its property plant andequipment?s (including Right of use assets) or intangible assets during the yearended March 312022.

(e) There are no proceedings initiated or are pending against theCompany for holding any benami property under the Prohibition of Benami PropertyTransactions Act 1988 and rules made thereunder.

ii. (a) The inventory has been physically verified by the managementduring the year except for goods-in-transit and inventories lying with third parties. Inour opinion the frequency of verification by the management is reasonable and thecoverage and procedure for such verification is appropriate and no discrepancies of 10% ormore in aggregate for each class of inventory were noticed. Inventories lying with thirdparties have been confirmed by them as at March 312022 and discrepancies of 10% or morein aggregate for each class of inventory were not noticed in respect of suchconfirmations.

(b) As disclosed in Note 20 to the standalone Ind AS financialstatements the Company has been sanctioned cash credit / working capital limits in excessof INR five Crores in aggregate from banks during the year on the basis of security ofcurrent assets of the Company. On account of the size and nature of the transactions thequarterly returns / statements filed by the Company does not tally with the books ofaccounts of the Company but the management has prepared a reconciliation of the same forthe quarter ended as on 31st March 2022 which is in agreement with the booksof accounts of the company.

iii. (a) During the year the Company has provided loans advances inthe nature of loans stood guarantee and provided security to companies firms limitedliability partnerships or any other parties listed in the register maintained underSection 189 of the Companies Act 2013 as follows:

(Figures in INR Lakhs)

Particulars Guarantees Loans
Aggregate amount granted / provided during the year-to other parties - 18.82
Balance outstanding as at balance sheet date in respect of above cases- to other parties 35.90 15.63
Aggregate amount granted / provided during the year -Associated Concern - 20
Balance outstanding as at balance sheet date in respect of above cases - Associated Concern - -

(b) During the year the investments made guarantees providedsecurity given and the terms and conditions of the grant of all loans and advances in thenature of loans and guarantees to companies firms limited liability partnerships or anyother parties are not prejudicial to the Company?s interest.

(c) The Company has granted loans during the year to a company-wherethe schedule of repayment of principal and payment of interest has been stipulated and therepayment or receipts are regular.

(d) There are no amounts of loans and advances in the nature of loansgranted to companies firms limited liability partnerships or any other parties which areoverdue for more than ninety days.

(e) There were no loans or advance in the nature of loan granted tocompanies firms limited liability partnerships or any other parties which was fallen dueduring the year that have been renewed or extended or fresh loans granted to settle theoverdues of existing loans given to the same parties.

(f) The Company has not granted any loans or advances in the nature ofloans either repayable on demand or without specifying any terms or period of repaymentto companies firms limited liability partnerships or any other parties. Accordingly therequirement to report on clause 3(iii)(f) of the Order is not applicable to the Company.

iv. In our opinion and according to the information and explanationsgiven to us Loans investments guarantees and security in respect of which provisions ofsections 185 and 186 of the Companies Act 2013 are applicable have been complied with bythe Company.

v. In our opinion and according to the information and explanationsgiven to us the Company has neither accepted any deposits from the public nor acceptedany amounts which are deemed to be deposits within the meaning of sections 73 to 76 of theCompanies Act and the rules made thereunder to the extent applicable. Accordingly therequirement to report on clause 3(v) of the Order is not applicable to the Company.

vi. We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 related to the manufacture of theCompany?s products and are of the opinion that prima facie the specified accountsand records have been made and maintained. We have not however made a detailedexamination of the same.

vii. According to the information and explanation given to us inrespect of statutory dues:

(a) The Company is regular in depositing with appropriate authoritiesundisputed statutory dues including goods and services tax provident fundemployees? state insurance income-tax sales-tax service tax duty of customs dutyof excise value added tax cess and other statutory dues applicable to it. According tothe information and explanations given to us and based on audit procedures performed byus no undisputed amounts payable in respect of these statutory dues were outstanding atthe year end for a period of more than six months from the date they became payable.

(b) The dues of goods and services tax provident fund employees?state insurance income-tax sales-tax service tax duty of custom duty of excise valueadded tax cess and other statutory dues have not been deposited on account of anydispute are as follows:

Name of Statute Nature of Dues Amount in Rs (In Lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 33.49 2018-2019* CIT (Appeals)
Gujarat Sales Tax Act 1969 Sales Tax 31.02 2001-2002 2002-2003. Commissioner (Appeals)
Maharashtra Value Added Tax Act 2002 VAT 815.06 2014- 2015 2015- 2016 Joint Commissioner (Appeals)
Central Sales Tax Act 1956 CST 32.15 2014-2015 Joint Commissioner (Appeals)

‘Assessment Year

viii. In our opinion and according to the information and explanationsgiven to us the Company has not surrendered or disclosed any transaction previouslyunrecorded in the books of account in the tax assessments under the Income Tax Act 1961as income during the year. Accordingly the requirement to report on clause 3(viii) of theOrder is not applicable to the Company.

ix. In our opinion and according to the information and explanationsgiven by the management:

(a) The Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon to any lender.

(b) The Company has not been declared willful defaulter by any bank orfinancial institution or government or any government authority.

(c) Term loans were applied for the purpose for which the loans wereobtained.

(d) On an overall examination of the standalone Ind AS financialstatements of the Company no funds raised on short-term basis have been used forlong-term purposes by the Company.

(e) On an overall examination of the standalone Ind AS financialstatements of the Company the Company has not taken any funds from any entity or personon account of or to meet the obligations of its subsidiaries associates or joint ventures

(f) The Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies. Hence therequirement to report on clause (ix)(f) of the Order is not applicable to the Company.

x. In our opinion and according to the information and explanationgiven by the management we are of the opinion that:

(a) The Company has not raised any money during the year by way ofinitial public offer / further public offer (including debt instruments) hence therequirement to report on clause 3(x)(a) of the Order is not applicable to the Company

(b) The Company has not made any preferential allotment or privateplacement of shares / fully or partially or optionally convertible debentures during theyear under audit and hence the requirement to report on clause 3(x)(b) of the Order isnot applicable to the Company.

xi. Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that:

(a) No fraud / material fraud by the Company or no fraud / materialfraud on the Company has been noticed or reported during the year.

(b) During the year no report under sub-section (12) of section 143 ofthe Companies Act 2013 has been filed by the cost auditor or secretarial auditor or by usin Form ADT - 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government.

(c) As represented to us by the management there are no whistle blowercomplaints received by the Company during the year

xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Therefore paragraph 3(xii) of the Orderis not applicable.

xiii. In our opinion and according to the information and explanationsgiven to us transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thenotes to the standalone Ind AS financial statements as required by the applicableaccounting standards.

xiv. (a) In our opinion and according to the information andexplanations given to us the Company has an internal audit system as required undersection 138 of the Act which is commensurate with the size and nature of its business.

(b) The internal audit reports of the Company issued till the date ofthe audit report for the period under audit have been considered by us.

xv. In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non-cash transactions with its directorsor persons connected with its directors and hence requirement to report on clause 3(xv) ofthe Order is not applicable to the Company.

xvi. (a) The provisions of section 45-IA of the Reserve Bank of IndiaAct 1934 (2 of 1934) are not applicable to the Company.

Accordingly the requirement to report on clause (xvi)(a) of the Orderis not applicable to the Company

(b) The Company has not conducted any Nonbanking Financial or HousingFinance activities without obtained a valid Certificate of Registration (COR) from theReserve Bank of India as per the Reserve Bank of India Act 1934

(c) The Company is not a Core Investment Company as defined in theregulations made by Reserve Bank of India. Accordingly the requirement to report onclause 3(xvi)(c) of the Order is not applicable to the Company.

xvii. The Company has not incurred cash losses in the current financialyear but had incurred cash losses amounting to ' 143.11 Lakhs in the immediately precedingfinancial year.

xviii. There has been no resignation of the statutory auditors duringthe year and accordingly requirement to report on Clause 3(xviii) of the Order is notapplicable to the Company.

xix. On the basis of the financial ratios disclosed in Note 43 to thestandalone Ind AS financial statements ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thestandalone Ind AS financial statements our knowledge of the Board of Directors andmanagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report that Company is not capable ofmeeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. We however state that this isnot an assurance as to the future viability of the Company. We further state that ourreporting is based on the facts up to the date of the audit report and we neither give anyguarantee nor any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date will get discharged by the Company as and when they fall due.

xx. (a) In our opinion and according to the information andexplanations given to us there is no unspent amount under sub-section

(5) of Section 135 of the Act pursuant to any project other thanongoing projects. Accordingly clause 3(xx)(a) of the Order is not applicable.

(b) There are no ongoing projects for which the Company is required totransfer unspent Corporate Social Responsibility (CSR) amount as at the end of theprevious financial year to a Special account within a period of 30 days from the end ofthe said financial year in compliance with the provisions of Section 135(6) of the Act.Accordingly clause 3(xx)(b) of the Order is not applicable.

xxi. The reporting under clause (xxi) is not applicable in respect ofaudit of standalone financial statements of the Company. Accordingly no comment has beenincluded in respect of said Clause under this report.

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