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Shree Bhavya Fabrics Ltd.

BSE: 521131 Sector: Industrials
NSE: N.A. ISIN Code: INE363D01018
BSE 00:00 | 17 Jun 7.14 -0.37
(-4.93%)
OPEN

7.14

HIGH

7.14

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7.14

NSE 05:30 | 01 Jan Shree Bhavya Fabrics Ltd
OPEN 7.14
PREVIOUS CLOSE 7.51
VOLUME 1103
52-Week high 8.00
52-Week low 2.73
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.14
CLOSE 7.51
VOLUME 1103
52-Week high 8.00
52-Week low 2.73
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shree Bhavya Fabrics Ltd. (SHREEBHAVYA) - Auditors Report

Company auditors report

To the Members of

M/S. SHREE BHAVYA FABRICS LIMITED

Report on the Standalone Financial Statements Opinion

I have audited the accompanying standalone financial statements of M/S. SHREE BHAVYAFABRICS LIMITED ("the Company") which comprises the Balance Sheet as at March31 2020 the Statement of Profit and Loss (including Other Comprehensive Income) thestatement of Changes in Equity and Cash Flow Statement for the year ended on that dateand a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the statement:

I. is presented in accordance with the requirements of the listing Regulations in thisregard; and

II. gives a true and fair view in conformity with the applicable accounting standardsand other accounting principles generally accepted in India of the net profit and othercomprehensive loss and other financial information of the Company for the quarter ended31st March 2020 and for the year ended March 31 2020.

Basis for Opinion

I conducted my audit in accordance with the Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. My responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of my report. I am 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 my audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and I have fulfilled otherethical responsibilities in accordance with these requirements and the Code of Ethics. Ibelieve that the audit evidence I have obtained is sufficient and appropriate to provide abasis for my opinion.

Key Audit Matters

Key Audit Matters are those matters that in my professional judgment were of mostsignificance in my audit of the financial statements of the current period. These matterswere addressed in the context of my audit of the financial statements as a whole and informing my opinion thereon and I do not provide separate opinion on these matters.

Emphasis of Matter

We draw attention to notes to the financial results which describes the uncertaintiesand the impact of Covid-19 pandemic on the Company's operations and results as assessed bythe management. Our opinion is not modified in respect of this matter.

Responsibility of Management for Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act. 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularitiesselection and application of appropriate accounting policies; making judgements andestimates that are responsible 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 statements 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.

Those Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statement

My objectives is to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes my opinion. Reasonable

assurance is a high level of assurance but is not a guarantee that an audit conductedin accordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

A further description of the auditor's responsibilities for the audit of the financialstatements is included in Annexure A. This description forms part of my auditor's report.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act I give in the Annexure B statement on the matters specified in paragraphs 3 and4 of the Order to the extent applicable.

2. As required by section 143(3) of the Act I report that:

a) I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purpose of my audit.

b) In my opinion proper books of account as required by law have been kept by theCompany so far as appears from my examination of those books;

c) The balance sheet the statement of profit and loss including Other ComprehensiveIncome statement of changes in equity and the cash flow Statement dealt with by thisReport are in agreement with the books of account;

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

e) On the basis of written representations received from the directors as on March 312020 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2020 from being appointed as a director in terms of Section 164 (2) of theAct; and

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 myseparate Report in "Annexure C". My report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

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 my opinionand to the best of my information and according to the explanations given to me:

i) The Company does not have any pending litigations for which provision have not beenmade which would impact its financial position.

ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any.

iii) The Provisions of transfer of funds to Investor Education and Protection Fund notapplicable to the Company.

As per our Report of Even Date
For and on Behalf of
For Abhishek Kumar & Associates
Chartered Accountants
Firm Regn. No. 130052W
Place : Ahmedabad (CA. Abhishek Agarwal)
Date : 30/07/2020 Proprietor
UDIN : 20132305AAAADQ1304 M. No. 132305

Annexure "A" to the Independent Auditor's Report Responsibilities for Auditof Financial Statement

As part of an audit in accordance with SAs I exercise professional judgment andmaintain professional skepticism throughout the audit. I 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 my 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 Companies Act 2013 I am also responsible for expressing my opinion on whether thecompany has internal financial controls with reference to Financial Statements in placeand the operating effectiveness of such 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 I conclude that a material uncertainty existsI am required to draw attention in my auditor's report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify my opinion. myconclusions are based on the audit evidence obtained up to the date of my 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.

I 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 I identify during my audit.

I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on my independenceand where applicable related safeguards.

As per our Report of Even Date For and on Behalf of For Abhishek Kumar &Associates Chartered Accountants Firm Regn. No. 130052W

Place : Ahmedabad (CA. Abhishek Agarwal)
Date : 30/07/2020 Proprietor
UDIN : 20132305AAAADQ1304 M. No. 132305

Annexure "B" to the Independent Auditor's Report

The Annexure referred to in my Independent Auditor's Report to the members of theCompany on the financial statements

for the year ended 31 March 2020 I report that;

(i) In respect of Fixed Assets:

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

(b) As per the information and explanations given to me all the assets have not beenphysically verified by the management during the year but there is a regular programme ofverification which in my opinion is reasonable having regard to the size of the companyand the nature of its assets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given to me and on the basis of myexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) In respect of Inventory:

(a) As explained to me inventories have been physically verified during the year bythe management at reasonable intervals. In my opinion the frequency of verification isreasonable. As informed to me there were no material discrepancies noticed on verificationbetween the physical stocks and the book records and any discrepancies found has beenproperly dealt within the books of accounts.

(iii) In respect of the loans secured or unsecured granted by the company tocompanies firms or other parties covered in the register maintained u/s. 189 of theCompanies Act 2013:

(a) During the year under audit the Company has not granted any loans secured orunsecured to the companies firms and other parties covered in the register maintainedunder section 189 of the Companies Act 2013 hence clause 3 (iii) (a) (iii) (b) and (iii)(c) of the Companies (Auditor's Report) Order 2020 are not applicable.

iv) In my opinion and according to the information and explanations given to me theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

v) According to the information and explanation given to me the company has notaccepted any deposit from the public during the year. Therefore the provisions of clause(v) of paragraph 3 of the order are not applicable to the company.

vi) The central government has prescribed maintenance of cost records under section148(1)(d) of the companies act 2013 in respect of certain manufacturing activities of thecompany. Company has obtained cost audit report for the financial year 2018-19 during theyear. I have broadly reviewed the accounts and records of the company in this connectionand are of the opinion that prima facie the prescribed accounts and records have beenmade and maintained. I have not however carried out detailed examination of the same.

vii) (a) The company is generally regular in depositing the undisputed statutory duesincluding Provident Fund

Employees State Insurance Income Tax Wealth Tax Sales Tax Goods & Service TaxCustom Duty Excise Duty Service Tax Value Added Tax Cess and any other statutory dueswith the appropriate authorities. According to the information and explanations given tome no undisputed amounts payable in respect of afore mentioned dues were outstanding asat 31St March 2020 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 materialdues of Income Tax Wealth Tax Sales Tax Goods and Service Tax Custom Duty ExciseDuty Service Tax Value Added Tax Cess and any other statutory dues which have not beendeposited with the appropriate authorities on account of any dispute.

(viii) In my opinion and according to the information and explanations given to me thecompany has not defaulted in repayment of dues to financial institutions or banks. Asthere are no debentures the question of repayment does not arise.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and in my opinion and according to theinformation and explanations given to me the Term loans have been applied for the purposefor which they were obtained.

(x) According to the information and explanation given to me no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of my audit.

(xi) According to the information and explanations give to me and based on myexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

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

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

(xiv) According to the information and explanations give to me and based on myexamination of the records of the Company the Company has not made preferentialallotment/private placement of shares during the year.

(xv) According to the information and explanations given to me and based on myexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

As per our Report of Even Date
For and on Behalf of
For Abhishek Kumar & Associates
Chartered Accountants
Firm Regn. No. 130052W
Place : Ahmedabad (CA. Abhishek Agarwal)
Date : 30/07/2020 Proprietor
UDIN : 20132305AAAADQ1304 M. No. 132305

Annexure "C" to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

I have audited the internal financial controls over financial reporting of M/S. SHREEBHAVYA FABRICS LIMITED ("the Company") as of 31 March 2020 in conjunctionwith my audit of the standalone financial statements of the Company for the year endedthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls 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'). These responsibilityinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the'Guidance Note') and the Standards of Accounting issued by ICAI and deemed to beprescribed

under Section 143(10) of the Companies Act 2013 to the extent applicable to an auditof internal financial controls both applicable to an audit of Internal FinancialControls both issued by the Institute of Chartered Accountants of India. Those Standardsand the Guidance Note require that I comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting were established and maintained and if such controlsoperated effectively in all material respects.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My audit of internal financial controls over financial reporting includedobtaining an understanding or 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the Company's internal financial controls systemover financial 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 of theManagement 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 my 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 2020 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.

As per our Report of Even Date
For and on Behalf of
For Abhishek Kumar & Associates
Chartered Accountants
Firm Regn. No. 130052W
Place : Ahmedabad (CA. Abhishek Agarwal)
Date : 30/07/2020 Proprietor
UDIN : 20132305AAAADQ1304 M. No. 132305