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Omnitex Industries (India) Ltd.

BSE: 514324 Sector: Industrials
NSE: N.A. ISIN Code: INE814D01010
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OPEN 39.05
CLOSE 39.05
VOLUME 1150
52-Week high 39.05
52-Week low 27.20
P/E
Mkt Cap.(Rs cr) 16
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Omnitex Industries (India) Ltd. (OMNITEXINDUSTRI) - Auditors Report

Company auditors report

Report on the Audit of the Ind AS Financial Statements Opinion

We have audited the financial statements of Omnitex Industries (India) Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2022 and the Statementof Profit and Loss Statement of Changes in Equity and Statement of Cash Flows for theyear then ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information (hereinafter referred to as "thefinancial 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 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2022 and loss and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor’s Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act 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 on these financial statements.

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. Wehave determined that there are no key audit matters to communicate in our report.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditor's reportthereon.

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 financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards specified in the Companies(Indian Accounting Standards) Rules 2015 (as amended) under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand 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 financial statement that give a true and fair view and are free frommaterial 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 is also responsible for overseeing the Company's financialreporting 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 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.

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

We also:

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

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

• 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 the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• 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 financial statements thatindividually or in aggregate makes it probable that the economic decisions of reasonablyknowledgeable user of the financial statements may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scope of our audit work and inevaluating the results of our work: and (ii) to evaluate the effect of any identifiedmisstatements 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 with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other matters

The financial statement of the company for the year ended 31st March 2021 were auditedby the predecessor auditor Tembey & Mhatre Chartered Accountants who have expressedan unmodified opinion on those financial statements vide their audit report dated June30 2021.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure-A" a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

2. According to the information and explanations given to us the Company has not paidany remuneration to its directors during the current year hence our report on thecompliance of provisions of Section 197(16) of the Act are not applicable.

3. 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 the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards specified in the Companies (Indian Accounting Standards) Rules 2015(as amended) under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164 (2) of the Act.

(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 has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 3.20(1) to the financial statements.

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 required to transferred to the Investor Education andProtection Fund by the Company during the year.

iv) The management of the Company has represented to us that to the best of it'sknowledge and belief other than as disclosed in the notes to the accounts:

(a) no funds have been advanced or loaned or invested (either from borrowed funds orshare premium or any other sources or kind of funds) by the Company to or in any otherperson(s) or entity (ies) including foreign entities ("Intermediaries") withthe understanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries;

(b) no funds have been received by the Company from any person(s) or entity(ies)including 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 we considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (a) and (b) above contain any material misstatement.

v) The Company has not declared or paid any dividend during the year hence ourcomments whether the same is in accordance with section 123 of the Companies Act 2013 arenot applicable.

For JMT & Associates
Chartered Accountants
(Firm Registration No. 104167W)
Amar Bafna
Partner
Membership No. 048639
Mumbai: 30th May 2022 UDIN: 22048639AJXNWB6643

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' in our report of even date to the members of OMNITEX INDUSTRIES(INDIA) LIMITED for the year ended 31st March 2022. We report that:

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

B. The Company did not own any intangible assets during the year hence therequirements to maintain proper records for the same did not apply to the Company.

(b) Some of the Property Plant and Equipment were physically verified at theend of the financial year by the management in accordance with a phased programme ofverification which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. No material discrepancies were noticed on suchverification.

(c) According to the records of the Company examined by us and the information andexplanations given to us the title deeds of immovable properties included in InvestmentProperties and disclosed in the financial statements are held in the name of the Company.

(d) According to the records of the Company examined by us and the information andexplanations given to us the Company has not revalued its Property Plant and Equipment(including Right of Use Assets) or intangible assets or both during the year.

(e) According to the records of the Company examined by us and the information andexplanations given to us no proceedings have been initiated or are pending againstthe Company for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (45 of 1988) and rules made thereunder.

2. (a) Physical verification of inventories has been conducted by the management atreasonable intervals. In our opinion the coverage and procedure of such verification isappropriate. There were no discrepancies of 10% or more in the aggregate noticed on suchverification.

(b) The Company has not been sanctioned working capital limits in excess of five crorerupees in aggregate from banks or financial institutions on the basis of security ofcurrent assets during any point of time of the year hence our comments on the quarterlyreturns or statements filed by the company with such banks or financial institutions anddetails thereof are not given.

3. According to the records of the Company examined by us and the information andexplanations given to us the Company has not made investments in provided any guaranteeor security or granted any loans or advances in the nature of loans secured or unsecuredduring the year to companies firms Limited Liability Partnerships or any other partieshence sub-clauses (a) to (e) of clause (3) (iii) of the Order are not applicable to theCompany.

4. In our opinion and according to the information and explanations given to us theCompany has complied with provisions of Section 186 of the Act in respect of makinginvestment. According to the information and explanations given to us there are no loansguarantees and security in respect of which provisions of section 185 and 186 of the Actare applicable.

5. The Company has not accepted any deposits from the public or received amounts whichare deemed to be deposits within the meaning of Section 73 to 76 of the Act and the rulesframed there under. We are informed that the Company Law Board or National Company LawTribunal or Reserve Bank of India or any court has not passed any Order.

6. The maintenance of cost records has not been prescribed for any of the products ofthe Company under sub-section (1) of section 148 of the Act.

7. (a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including goods andservice tax provident fund employees' state insurance income-tax sales tax servicetax duty of customs duty of excise

value added tax cess and other statutory dues as applicable to it. According to theinformation and explanations given to us there are no arrears of undisputed amountspayable in respect of above statutory dues which were outstanding as on the last day ofthe financial year for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no cases ofnon-deposit with appropriate authorities of disputed statutory dues referred to insub-clause (a) above.

8. According to the records of the Company examined by us and the information andexplanations given to us the Company has not surrendered or disclosed any transactionsnot recorded in the books of account as income during the year in the tax assessmentsunder the Income Tax Act 1961 (43 of 1961) hence clause (3)(viii) of the Order is notapplicable to the Company.

9. 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 has not been declared wilful defaulter by any bank or financialinstitution or other lender

(c) the Company has not taken any term loan hence our reporting on the utilization ofthe same for the purpose for which the loans were obtained is not applicable.

(d) funds raised on short term basis have not been utilized for long term purposes.

(e) the company does not have any subsidiaries joint ventures or associate companieshence the question of taking any funds from any entity or person on account of or to meetthe obligations of its subsidiaries associates or joint ventures does not arise.

(f) the company does not have any subsidiaries joint ventures or associate companieshence question of raising loans during the year on the pledge of securities held in itssubsidiaries joint ventures or associate companies does not arise.

10. (a) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year hence the question ofapplication of funds and delays and defaults and subsequent rectification does not arise.

(b) The Company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally convertible) during the yearhence the question of compliance of the requirements of section 42 and section 62 of theAct and use of funds raised does not arise.

11. (a) During the course of our examination of the books of account and records of theCompany carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations given to us we have neither come acrossany instances of fraud by the Company or any fraud on the Company which were noticed orreported during the year nor have we been informed of any such instances by themanagement.

(b) During the year no report under sub-section (12) of section 143 of the Act in FormADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with theCentral Government has been filed.

(c) According to the records of the Company examined by us and the information andexplanations given to us the Company has not received any whistle-blower complaintsduring the year.

12. The Company is not a Nidhi Company hence our comments as required under sub-clauses(a) (b) and (c) of clause 3 (xii) of the Order are not given.

13. In our opinion and according to the records of the Company examined by us and theinformation and explanations given to us the transactions entered by the Company duringthe year with related parties are in compliance with the provisions of Section 177 and 188of the Act where applicable and the details thereof have been disclosed in the FinancialStatements etc. as required by the accounting standards.

14. (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 reports of the Company issued till date forthe period under audit.

15. According to the information and explanations given to us in our opinion theCompany has not entered into any non-cash transactions with directors or persons connectedwith him during the year hence provisions of section 192 of Act are not applicable to theCompany.

16. According to the information and explanations given to us in our opinion:

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

(b) the Company has not conducted any Non- Banking Financial or Housing Financeactivities during the year.

(c) the Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India.

(d) In view of comments in sub-clauses (a) (b) and (c) above the sub-clause (d) ofclause 3 (xvi) of the Order is not applicable to the Company.

17. The Company has incurred cash losses of Rs. 17.09 lakhs in the financial year underreport; and Rs. 9.85 lakhs in the immediately preceding financial year.

18. There has been no resignation of the statutory auditors during the year henceclause 3 (xviii) of the Order is not applicable to the Company.

19. According to the information and explanations given to us and on the basis of thefinancial ratios disclosed in Note 3.20(10) to the financial statements ageing andexpected dates of realization of financial assets and payment of financial liabilitiesother information accompanying the financial statements our knowledge of the Board ofDirectors and management plans and based on our examination of the evidence supporting theassumptions in our opinion nothing has come to our attention which causes us to believethat any material uncertainty exists as on the date of the audit report that the Companyis not capable of meeting its liabilities existing at the date of balance sheet as andwhen they fall due within a period of one year from the balance sheet date. We howeverstate that this is not an assurance as to the future viability of the Company. We furtherstate that our reporting is based on the facts upto the date of our present audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by theCompany as and when they fall due.

20. According to the records of the Company examined by us and the information andexplanations given to us the provisions of Section 135 of the Act relating to CSRactivities are not applicable to the Company for the year under report due to lossposition hence our reporting on transferring the unspent amount in respect of CSRactivities other than ongoing project and unspent amount in respect of any ongoing projectis not applicable.

For JMT & Associates
Chartered Accountants
(Firm Registration No. 104167W)
Amar Bafna
Partner
Membership No. 048639
Mumbai: 30th May 2022 UDIN: 22048639AJXNWB6643

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

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

The Annexure referred to in paragraph 3 (f) under "Report on Other Legal andRegulatory Requirements" in our report of even date to the members of OMNITEXINDUSTRIES (INDIA) LIMITED for the year ended 31st March 2022. We report that:

We have audited the internal financial controls over financial statements of OmnitexIndustries (India) Limited ("the Company") as of 31st March 2022 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended 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 with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by the Institute of Chartered Accountants ofIndia ("the Guidance Note"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to 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 the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to the financial statements based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to the financial statements. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to 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 withreference to financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

A company's internal financial control 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 statement 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditure 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

Because of the inherent limitations of internal financial controls 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 to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures 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 were operating effectively as at 31st March 2022 based on theinternal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For JMT & Associates
Chartered Accountants
(Firm Registration No. 104167W)
Amar Bafna
Partner
Membership No. 048639
Mumbai: 30th May 2022 UDIN: 22048639AJXNWB6643

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