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Trident Texofab Ltd.

BSE: 540726 Sector: Others
NSE: N.A. ISIN Code: INE071Y01013
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NSE 05:30 | 01 Jan Trident Texofab Ltd
OPEN 115.00
PREVIOUS CLOSE 116.40
VOLUME 11626
52-Week high 134.00
52-Week low 30.20
P/E 117.42
Mkt Cap.(Rs cr) 117
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 115.00
CLOSE 116.40
VOLUME 11626
52-Week high 134.00
52-Week low 30.20
P/E 117.42
Mkt Cap.(Rs cr) 117
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Trident Texofab Ltd. (TRIDENTTEXOFAB) - Auditors Report

Company auditors report

To the Members of

TRIDENT TEXOFAB LIMITED

Report on the Ind AS Financial Statements

OPINION

We have audited the accompanying IndAS Financial Statements of TRIDENTTEXOFAB LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2021 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Ind AS Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2021 and its profits (including other comprehensive income) thechanges in equity and its cash flows for the year ended on that date.

BASIS FOR OPINION

We conducted our audit of the Ind AS Financial Statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements' section of our report. Weare independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the financial statements under the provisions of theCompanies Act 2013 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.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.

Key audit matter How our audit addressed the key audit matter
1. REVENUE RECOGNITION
Refer Note 16 to the Financial Statement OUR KEY PROCEDURES INCLUDED BUT WERE NOT LIMITED TO THE FOLLOWING:
Revenue from sale transaction is recognized when goods are dispatched or delivery is handed over to transporterprovided it can be reliably measured and it is reasonable to expect ultimate collection. a) Assessed the appropriateness of the Company's revenue recognition accounting policies including those relating to rebates and trade discounts by comparing with the applicable accounting standards.
Revenue is measured at fair value of the consideration received or receivable and is accounted for net of rebates trade discounts. b) Performed test of details:
The estimation of discounts incentives and rebates recognized related to sales made during the year is material and considered to be complex and subject to judgments. The complexity mainly relates to various discounts incentives and scheme offers diverse range of market presence and complex contractual agreements/ commercial terms across those markets. Therefore there is a risk of revenue being misstated as a result of inaccurate estimates of discounts and rebates. i. Tested on a sample basis sales transactions to the underlying supporting documentation which includes goods dispatch notes and shipping documents.
Considering the materiality of amounts involved significant judgements related to estimation of rebates and discounts the same has been considered as a key audit matter. ii. Reviewed on a sample basis sales agreements and the underlying contractual terms related to delivery of goods and rebates to assess the Company's revenue recognition policies with reference to the requirements of the applicable accounting standards.
iii. Assessed the Company's process for recording of the accruals for discounts and rebates as at the year-end for the prevailing incentive schemes.
iv. Tested on a sample basis discounts and rebates recorded during the year to the relevant approvals and supporting documentation which includes assessing the terms and conditions defined in the prevalent schemes and customer contracts.
c) Assessed the appropriateness of the Company's description of the accounting policy disclosures related to discounts Incentives and rebates and whether these are adequately presented in the standalone financial statements.
2. LITIGATIONS AND CLAIMS - PROVISIONS AND CONTINGENT LIABILITIES
Refer Note 30 to the Financial Statement OUR KEY PROCEDURES INCLUDED BUT NOT LIMITED TO THE FOLLOWING:
The Company is involved in direct tax and other litigations (‘litigations') that are pending with different statutory authorities. a) Assessed the appropriateness of the Company's accounting policies relating to provisions and contingent liability by comparing with the applicable accounting standards;
The level of management judgement associated with determining the need for and the quantum of provisions for any liabilities arising from these litigations is considered to be high. This judgement is dependent on a number of significant assumptions and assessments which involves interpreting the various applicable rules regulations practices and considering precedents in the various jurisdictions. b) Assessed the Company's process and the underlying controls for identification of the pending litigations and completeness for financial reporting and also for monitoring of significant developments in relation to such pending litigations;
This matter is considered as a key audit matter in view of the uncertainty regarding the outcome of these litigations the significance of the amounts involved and the subjectivity involved in management's judgement as to whether the amount should be recognized as a provision or only disclosed as contingent liability in the standalone financial statements. c) Assessed the Company's assumptions and estimates in respect of litigations including the liabilities or provisions recognized or contingent liabilities disclosed in the standalone financial statements. This involved assessing the probability of an unfavourable outcome of a given proceeding and the reliability of estimates of related amounts;
d) Performed substantive procedures on the underlying calculations supporting the provisions recorded;
e) Assessed the appropriateness of the Company's description of the accounting policy disclosures related to litigations and whether these are adequately presented in the standalone financial statements
3. TRANSITION TO IND AS ACCOUNTING FRAMEWORK
Refer Note 35 to the Financial Statement OUR KEY PROCEDURES INCLUDED BUT NOT LIMITED TOTHE FOLLOWING
The Company has adopted Ind AS from 1 April 2020 with an effective date of 1 April 2019 for such transition. For periods up to and including the year ended 31 March 2020 the Company had prepared and presented its financial statements in accordance with the erstwhile generally accepted accounting principles in India (Indian GAAP). To give effect of the transition to Ind AS these financial statements for the year ended 31 March 2021 together with the comparative financial information for the previous year ended 31 March 2020 and the transition date Balance Sheet as at 1 April 2019 have been prepared under Ind AS. a) Read the Ind AS impact assessment performed by the Management and the resultant changes made to the accounting policies considering the requirements of the new framework.
The transition has involved significant change in the Company's policies and processes for financial reporting including generation of supportable information and applying estimates to inter alia determine impact of Ind AS on accounting and disclosure requirements. In view of the complexity involved Ind AS transition and the preparation of financial statements subsequent to the transition date have been areas of key focus in our audit. b) Evaluated the exemptions and exceptions allowed by Ind AS and applied by the Management in applying the first-time adoption principles of Ind AS 101 in respect of fair valuation of assets and liabilities existing as at transition date.
c) Tested the accounting adjustments posted as at the transition date and in respect of the previous year to convert the financial information reported under erstwhile Indian GAAP to Ind AS.
d) Tested the disclosures prescribed under Ind AS.

OTHER MATTER

The comparative financial information of the Company for the year endedMarch 31 2020 and the transition date opening balance sheet as at April 1 2019 includedin these standalone financial statements are based on the previously issued statutoryfinancial statements for the years ended March 31 2020 and March 31 2019 prepared inaccordance with the Companies (Accounting Standards) Rules 2006 (as amended). Thecomparative financial information of the Company for the year ended March 31 2020 whichwas audited by us and on which we expressed an unmodified opinion and the financialstatements of the Company for the year ended 31st March 2019 which was auditedby another auditor who expressed an unmodified opinion on those statements. Our opinion isnot modified in respect of those financial statements as adjusted for differences inaccounting principles adopted by the Company on transition to Ind AS which have beenaudited by us.

OTHER INFORMATION

The other information comprises the information included in the AnnualReport but does not include the standalone Ind AS financial statements and ourauditors' report thereon. The Company's Board of Directors is responsible forthe other information.

Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon. In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FORTHE IND-AS FINANCIAL STATEMENTS

The Company's Board of Directors are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Ind AS Financial Statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of theAct..

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS Financial 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 forassessing 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.

The Company's Board of Directors is also responsible foroverseeing the Company's financial reporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE IND-AS FINANCIALSTATEMENTS

Our objectives are to obtain reasonable assurance about whether theInd-AS financial statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

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

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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

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

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 in terms of Section 143(11) ofthe Act we give in "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 based on our audit wereport that:

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

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

c) The Balance Sheet the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Ind AS Financial Statements complywith the Indian Accounting Standards prescribed under section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of the written representations received from thedirectors of the Company as on March 31 2021 taken on record by the Board of Directorsnone of the directors is disqualified as on March 31 2021 from being appointed as adirector in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

g) with respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The company has properly disclosed the pending litigation in its IndAS Financial Statements;

ii. The Company does not have any long-term contracts includingderivative contracts for which there were any material unforeseeable losses;

iii. The Company was not required to transfer any amount to theInvestor Education and Protection Fund.

Annexure ‘A'

To the Independent Auditor's Report

(Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of Independent Auditors' Report to the Membersof TRIDENT TEXOFAB LIMITED on the financial statements for the period ended on 31stMarch 2021)

We report the following:

1) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets;

(b) The Fixed Assets have been physically verified by the management ina phased manner designed to cover all the items over a period of three years which inour opinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

(c) The title deeds of immovable properties are held in the name of thecompany except one property admeasuring 89.480 sq meter of Super carpet area situated atNorth Extension Building City: Surat in which case the transfer proceedings in the nameof the company is in process.

2) (a) The management has conducted the physical verification ofinventory lying at the factory premises office and godown except for goods-in-transit andstocks lying with third parties at reasonable intervals which in our opinion thefrequency of such verification is reasonable.

(b) The discrepancies noticed on physical verification of the inventoryas compared to books records which has been properly dealt with in the books of accountwere not material.

3) According to the information and explanations given to us by themanagement and records produced The Company has granted loans secured or unsecured tocompanies firms Limited Liability partnerships or other parties covered in the Registermaintained under section 189 of the Act. The terms and condition are not prejudicial tothe interest of the company

4) In our opinion and according to the information and explanationsgiven to us the company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 In respect of loans investments guarantees and security.

5) According to the information and explanations given to us and asper our examination of records the company has not accepted any deposits from public andtherefore the directives issued by the Reserve Bank of India and the provisions ofSection 73 to 76 or any other relevant provision of the Companies Act 2013 and rulesframed there under are not applicable.

6) The maintenance of cost records has not been specified by theCentral Government under section 148(1) of the Companies Act 2013 for the businessactivities carried out by the Company. Thus reporting under clause 3(vi) of the order isnot applicable to the Company.

7) According to information and explanations given to us and on thebasis of our examination of the books of account and records the Company has beengenerally regular in depositing undisputed statutory dues including Provident FundEmployees State Insurance Income-Tax Goods & Service Tax Duty of Customs and anyother statutory dues with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of the above were inarrears as at March 31 2021 for a period of more than six months from the date on whenthey become payable.

According to the information and explanation given to us Details ofdues of income tax sales tax service tax duty of customs duty of excise value addedtax outstanding on account of disputes are given below:

Name of the Statute Forum where Dispute is pending Period Amount Involved (Rs. in lacs) Amount Paid (Rs. in lacs) Nature of Dues
Income Tax Act 1961 Commissioner of Income Tax (Appeals) A.Y.2017-18 105.18 5.50 Income Tax

8) In our opinion and according to the information & explanationsgiven to us the company has not defaulted in the repayment of dues to banks.

9) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has raised money by way ofterm loan during the year. The money so raised has been utilized for the purpose for whichthey were raised.

10) To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company or no fraud on the Company by itsofficers or employees has been noticed or reported during the year.

11) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act

12) The Company is not a Nidhi Company and hence reporting under clause3 (xii) of the Order is not applicable to the Company.

13) In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 177 and 188 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the Ind AS Financial Statements asrequired by the applicable accounting standards.

14) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly paid convertible debenturesand hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.

15) In our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its Directors or persons connected to its directors and hence provisions of section192 of the Companies Act 2013 are not applicable to the Company.

16) The company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

Annexure ‘B'

To the independent auditor's report

(Referred to in paragraph 2(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of TRIDENT TEXOFABLIMITED on the financial statements for the period ended on 31st March2021)

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

We have audited the internal financial controls over financialreporting of TRIDENT TEXOFAB LIMITED ("the Company") as of March 31 2021in conjunction with our audit of the financial statements of the Company for the yearended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the "internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia". These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

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

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

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assetsthat could have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIALREPORTING

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion to the best of our information and according to thesize of the company along with explanations given to us the Company has in all materialrespects an adequate internal financial controls system over financial reporting and suchinternal financial controls over financial reporting were operating effectively as atMarch 31 2021 "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".

For Shah Kailash & Associates
Chartered Accountants
FRN: 109647W
Sd/- Place: Surat
CA. Kailash Shah Partner Date: 28/06/2021
M. No.: 044030

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