Report on the Standalone Financial Statements
We have audited the standalone financial statements of SKS Textiles Limited.("theCompany") which comprise the balance sheet as at 31st March 2019 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. In our opinion and to the best ofour information and according to the explanations given to us the aforesaid standalonefinancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2019 andprofit/loss (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 Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor s Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
Management s Responsibility for the 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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity) 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. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error. In preparing the financial statements management is responsiblefor assessing the Company s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. Those Board of Directors arealso responsible for overseeing the Company s financial reporting 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.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable. As required bySection 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.
d) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account
e) In our 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.
f) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.
g) 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 A".
h) With respect to the other matters to be included in the Auditor s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For Bhatter & Company
Mr. Daulal Bhatter
Meb No. : 016937
ANNEXURE TO AUDITORS REPORT
ANNEXED REFERRED TO PARAGRAPH 1 UNDER THE HEADING REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS OF OUR REPORT OF EVEN DATE ON THE FINANCIAL STATEMENT FOR THE YEAR ENDEDMARCH 31 2019 OF "SKS TEXTILES LIMITED".ON THE BASIS OF SUCH CHECKS ASWE CONSIDER APPROPRIATE AND IN THE INFORMATION AND EXPALATION GIVEN TO US WE STATE THAT:
1. The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets. The Fixed Assets have been physicallyverified by the management periodically in a phased manner and no material discrepancieshave been noticed on physical verification as confirmed by the management. Company do nothave any immovable property
2. a) The Inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness. c) The Company is maintaining proper records of the inventory.
3. The Company has not granted loans to parties covered in the register maintainedunder Section 189 of the Act.(Previous year Rs.NIL/- ). Further the Company has not takenloan from any party covered in the register maintained under Section 189 of the Act.
4. In Our opinion and according to the information and explanation given to us thecompany has not advanced any loan given any guarantee or provided any security to anyperson specified under section 185 of the Act and the company has not made investmentthrough not more than two layers of investment companies as specified under section 186(1)and the company has not given any loan to any person or other body corporate; given anyguarantee or provided security in connection with a loan to any other body corporate orperson as specified under section 186(2).
5. In Our opinion and according to the information and explanation given to us thecompany has not accepted deposits from the public to which provision of Section 73 toSection 76 of the Companies Act 2013 or any other relevant provisions of the companiesAct and the rules framed thereunder where applicable.
6. According to the information and explanation given to us the Company has maintainedproper cost records as specified under section 148 (1) of the Companies Act 2013.
7. According to the information and explanation given to us and on the basis of ourexamination of the books of accounts the Company is regular in depositing undisputedstatutory dues including Provident fund Employees state insurance Income Tax Sales Taxand other statutory dues with the appropriate authorities.
8. The Company has not defaulted in repayment of dues of Financial Institution or banksDebenture holders.
9. According to the information and explanation given to us the company did not raiseany money by way of initial public offer or further public offer (including debtinstruments) and term loan during the year. Hence the provision of para 3 ix of the orderare not applicable.
10. Based upon the audit procedures performed and on the basis of information andexplanation provided by the management we report that no fraud on or by the Company hasbeen noticed or reported during the year
11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;
12. As per information and records available with usthe company is not Nidhi Company.
13. As per the information and explanation given to us all transactions entered intoby the Company with the related parties are in compliance with Sections 188 of Act whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.
14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Therefore theprovisions of Paragraph 3(xiv) of the Order are not applicable to the Company.
15. The Company has not entered into any noncash transactions with directors or personsconnected with him. Therefore the provisions of Paragraph 3(xv) of the Order are notapplicable to the Company.
16. Based on the information and explanation given to us the Company is not required tobe registered under Section 45-IA of the Reserve Bank of India Act 1934.
For Bhatter & Company
Mr. Daulal Bhatter
Meb No. : 016937
TO THE INDEPENDENT AUDITOR S REPORT
ANNEXED REFERRED TO PARAGRAPH 2 UNDER THE HEADING REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF "SKS TEXTILES PRIVATLIMITED" ON THE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31 2019.
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub- Section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SKSTEXTILES LIMITED ("the Company") as of March 31 2019 in conjunction withour audit of the financial statements of the Company for the year 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 essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India (ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company s policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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 to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor s judgment including the assessment of the risks of materialmisstatement 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 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.
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 March 31 2019 based on theessential components of internal control stated in the Guidance Note issued by ICAI.
For Bhatter & Company
Mr. Daulal Bhatter
Meb No. : 016937