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Kush Industries Ltd.

BSE: 514240 Sector: Industrials
NSE: SUZLONFIBR ISIN Code: INE979D01011
BSE 00:00 | 24 Sep 3.50 0.04
(1.16%)
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3.29

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3.50

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NSE 05:30 | 01 Jan Kush Industries Ltd
OPEN 3.29
PREVIOUS CLOSE 3.46
VOLUME 5589
52-Week high 3.60
52-Week low 0.46
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.29
CLOSE 3.46
VOLUME 5589
52-Week high 3.60
52-Week low 0.46
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kush Industries Ltd. (SUZLONFIBR) - Auditors Report

Company auditors report

To

The Members of

KUSH INDUSTRIES LIMITED (formerly known as SNS TEXTILES LTD.)

Opinion

We have audited the accompanying standalone financial statements of Kush IndustriesLimited (Earlier Known as SNS Textiles Limited) (“the Company”) whichcomprise the balance sheet as at 31st March 2021 the statement ofprofit and loss (including other comprehensive income) the Statement of Changes in Equityand the Statement of Cash Flows for the year then ended and summary of the significantaccounting policies and other explanatory information (herein after referred to as“standalone Ind AS financial statements”).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India;

a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2021;

b) In the case of the Statement of Profit and Loss of the Loss for the yearended on that date; and

c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules there under and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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.

Key Audit Matters Auditor's Response
Unsecured loan:
The Company has not provided the loan agreement in respect of loans availed from directors and corporate We are unable to form an opinion about the timely repayment of these outstanding debts. However management is confident for repayment of the said loan.

Information other than the financial statements and auditors' report thereon

The Company's board of directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report Business Responsibility Report but does notinclude the financial statements and our auditor's report thereon.

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

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

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

Management's responsibility for the financial statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (“the Act”) with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs profit/loss and other comprehensive income changes in equity and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (“Ind AS”) prescribed under Section133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalone Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement 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.

Auditor's Responsibilities for the Audit of the Financial Statements

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143 (10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlsrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We are also responsible to 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 entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the financial statements or if such disclosures are inadequateto modify the opinion. Our conclusions are based on the audit evidence obtained up to thedate of the auditor's report. However future events or conditions may cause an entity tocease to continue as a going concern.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of The Companies Act 2013we give in the “Annexure A” a statement on the matters specified inparagraphs 3 and 4 of the Order.

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 purpose 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014

(e) On the basis of written representations received from the directors as on March312021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312021 from being appointed as a director in terms of Section 164(2) of theAct.

(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 ourreport 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 has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note - Disclosure as required by AS 29“Provisions Contingent Liability and contingent Assets” to the financialstatements.

ii. the Company has not undertaken any long-term contracts including derivativecontracts.

iii. The Company is not required to transfer any amount to Investor Education andProtection Fund.

For V H GUNDARWALA & CO.
Chartered Accountants
Place : Surat (V. H. GUNDARWALA)
Date : 26-06-2021 PROPRIETOR
M.NO:-046851
FRN:-113291w
UDIN : 21046851AAAACO3208

ANNEXURE-A TO THE AUDITOR'S REPORT

Referred to in our Report of even date an annexure on the matters specified inparagraphs 3 and 4 of the CARO on the Statements of Accounts of Kush Industries Limited(Earlier Known as SNS Textiles Limited) as at and for the Year ended March 31 2021we report that:

1. Fixed Assets

The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

The company has a regular program of physical verification of fixed assets by themanagement during the year. The procedure and periodicity of verification in our opinionis reasonable having regard to the size of the company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.

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 otherthan self-constructed immovable property (buildings) as disclosed in fixed assets to thefinancial statement are held in the name of the company except the following:

Nature of Property Total number of cases Name in the Lease / Sale Deed Gross Block as on 31-03-2021 (' in Lakh) Net Block as on 31-03-2021 (' in Lakh)
Land 01 Suzlon Fibres Ltd. 9.34 9.34

The Company was formerly named as Suzlon Fibres Ltd.

2. Inventory

As explained to us the physical verification of inventories has been conducted atreasonable intervals by the management. No discrepancies were noticed on physicalverification.

3. Loans granted by the company

According to the information and explanations given by the management the Company hasnot granted any loans secured or unsecured to companies Firms or other parties coveredin the register maintained under section 189 of the Companies Act 2013 and therefore theClause 3(iii) of the Companies (Auditor's Report) Order 2016 is not applicable.

4. Loans investments guarantees and security

In our opinion and according to the information and explanations given to us thecompany has not advanced any loan or given any guarantee or provided any security or madeany investment covered under section 185 and 186 of the Act.

5. Deposits

The Company has not accepted any deposits as per the directive issued by the ReserveBank of India and as per the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act and the rules framed there under. Accordingly the clause3 (v) of the Companies (Auditor's Report) Order 2016 is not applicable to the company.

6. Cost Records

Maintenance of cost records as specified by the Central Government under sub section(1) of section 148 of the Companies act is not applicable to the company. Accordingly theclause 3(vi) of the Companies (Auditor's Report) Order 2016 is not applicable to thecompany.

7. Statutory Dues

According to information and explanations given to us and on the basis of ourexamination of the books of accounts the company has been generally regular in depositingwith appropriate authorities undisputed statutory dues including Provident fundEmployee's State Insurance Income T ax Service tax Sales tax Goods and Service taxExcise duty Custom duty and other statutory dues.

According to the information and explanation given to us there were no outstandingstatutory dues as at March 31 2021 for a period of more than six months from the datethey became payable.

According to the information and explanation given to us and the records of thecompany there are no dues of provident fund income tax central sales tax VAT exciseduty service tax GST and other statutory dues which have not been deposited on accountof any dispute except the following-

Name of the Statute Nature of Dues Amount under Dispute (Rs.) Period to which the amount relates Forum where dispute is pending Amount deposited against ()
Foreign Trade 1992 Custom Duty / Export Obligation Not yet determined 1997-98 Deputy Commissioner of Customs Raigad Maharashtra 2100000/-
Central Excise Act 1944 Excise Duty 3042620/- Jul'95 to Feb'97 CESTAT Mumbai 680000/-
Income Tax Act 1961 Income Tax 5449019/- A.Y. 1994-95 ITAT Ahmedabad 384530/-
Income Tax Act 1961 Income Tax 1864220/- A.Y. 1996-97 ITAT Ahmedabad -Nil-
Income Tax Act 1961 Income Tax 8164171/- A.Y. 2017-18 Commissioner Appeal -Nil-
Sales tax Act 1969 Sales Tax 3299845/- 2001-02 Joint Commissioner Gujarat Value Added Tax Dept. -Nil-

The aforesaid legal disputes and resulting liability in some of the cases does notquantify the amount of interest or penalty vide respective show cause notice or order ofthe jurisdictional officer which may increase the liability eventually when therespective cases are finally adjudicated.

8. Repayment of financial dues

In our opinion and according to information and explanations given by the managementthe Company has neither borrowed funds from any financial institutions banks orgovernment nor it has issued debentures till 31st March 2021. Consequently in ouropinion the question of reporting on defaults in repayment of dues to financialinstitutions banks government and debenture holders does not arise.

9. Public Offer:

According to information and explanation given to us the company has not raised moneyby way of initial public offer or further public offer (including debt instruments) orobtained term loans during the year.

10. End use of funds

On the basis of our examination of records and information and explanations given to usthe term loans have been applied for the purpose for which they were raised.

11. Fraud

Based on our audit procedure as per our opinion and according to the information andexplanation given by the management no fraud by the company or on the company by itsofficers or employees has been noticed or reported during the year.

12. Managerial Remuneration

According to the information and explanations given to us and based on our examinationof the books and records of the Company we are of the opinion that the Company has notpaid any managerial remuneration during the year under audit and consequently therequirements of clause 3(xi) of Companies (Auditor's Report) Order 2016 is notapplicable.

13. Nidhi Company

In our opinion and according to the information and explanations given by themanagement the Company is not a Nidhi company. Accordingly Clause 3(xii) of theCompanies (Auditor's Report) Order 201 6 is not applicable.

14. Preferential Allotment of shares/debentures

Based on our audit procedures and as per the information and explanations given by themanagement the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year and accordingly theprovision of clause 3(xiv) of the CARO is not applicable to the Company.

15. Related party transactions

According to the information and explanations given by the management and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

16. Non-cash transactions

According to the information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

17. NBFC company

The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.

For V H GUNDARWALA & CO.
Chartered Accountants
Place: Surat (V. H. GUNDARWALA)
Date : 26-06-2021 PROPRIETOR
M.NO:-046851
FRN:-113291w
UDIN : 21046851AAAACO3208

Annexure B: Report on the Internal Financial Controls under Clause (i) of Sub-section 3of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of KUSHINDUSTRIES LIMITED (formerly known as SNS TEXTILES LTD.) as of 31st March 2021in conjunction with our audit of the standalone financial statements of the Company forthe period ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued 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 over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with 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 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 controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For V H GUNDARWALA & CO.
Chartered Accountants
Place: Surat (V. H. GUNDARWALA)
Date : 26-06-2021 PROPRIETOR
M.NO:-046851
FRN:-113291w
UDIN : 21046851AAAACO3208

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