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Tuni Textile Mills Ltd.

BSE: 531411 Sector: Industrials
NSE: N.A. ISIN Code: INE560D01027
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NSE 05:30 | 01 Jan Tuni Textile Mills Ltd
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OPEN 1.00
CLOSE 0.99
VOLUME 108986
52-Week high 1.00
52-Week low 0.24
P/E
Mkt Cap.(Rs cr) 13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tuni Textile Mills Ltd. (TUNITEXTMILLS) - Auditors Report

Company auditors report

To The Members of TUNI TEXTILE MILLS LIMITED

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying financial statements of Tuni Textile Mills Limited(“the Company”) which comprise the Balance Sheet as at 31 March 2020 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes tothe financial statements including a summary of the significant accounting policies andother explanatory information (hereinafter referred to as “the financialstatements”). In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 (“the Act”) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended (“IndAS”) and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2020 its profit including othercomprehensive income its changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) as specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial 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 (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the financial statements.

Emphasis of Matters

We draw your attention to the following matters:

Note 45 (a) and (b) to the financial statements which explain the uncertainties andmanagement's assessment of the financial impact due to lockdown / restrictions related tothe COVID-19 pandemic imposed by the Governments for which a definitive assessment of theimpact is dependent upon future economic conditions. Note 45 (c) to the financialstatements the Company could not take balance confirmations from sundry debtors andcreditors as at close of the year as due to lockdown the offices were closed and fornon-availability concerned persons. Therefore the balances of sundry debtors and creditorsare subject to confirmation and reconciliation. Note no. 45 (d) to the financialstatements the management due to lockdown could not physically verify the inventoriesat the close of the year Our opinion is not modified in respect of these matters.

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 the matter described below the key audit matters to be communicated in ourreport

Key Audit Matters How our Audit addressed the key Audit Matters
Appropriateness of revenue recognition on sale of goods. Our audit procedures relating to revenue recognition include the following:
Refer note 2.2 and Note 25 of the financial statements. a. Understood and performed procedures to assess the design and test the operating effectiveness of relevant controls related to recording of revenue.
The Company has revenue from sale of goods and sale of services. b. Assessed whether the policy of recognizing revenue was in line with Ind AS - 115.
Revenue from sale of goods is recognised under IndAS 115- ‘Revenue from Contracts with Customers' at a point in time when the control has been transferred c. Tested the reconciliation of the amounts as per the sales register to the general ledger.
which generally coincides with dispatch of products to customers in case of domestic sales and on the basis of bill of lading in the case of export sales. d. Performed tests on sample basis by validating the amounts recorded with the underlying documents which inter - alia includes invoices dispatch documents customer orders/ contracts receipt of consideration from customers where applicable.
Revenue from services is recognized by measuring progress towards satisfaction of performance obligation for the services rendered e. Performed cut off testing on sample basis and ensured that the revenue from sale of goods is recognised in the appropriate period.
We determined this to be a key audit matter due to significant time and effort involved in assessing the appropriateness of revenue recognition and covering the aspects of completeness accuracy occurrence and cut off. Based on the above procedures performed we did not identify any exceptions in revenue recognition on sale of goods.

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

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report but does not include the financialstatements and our auditor's report thereon. Our opinion on the financial statements doesnot cover the other information and we do not express any form of assurance conclusionthereon. In connection with our audit of the financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in thisregard.

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 (including othercomprehensive income) changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards prescribed under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. In preparing thefinancial statements the Board of Directors is responsible for assessing the Company'sability to continue as a going concern disclosing as applicable matters related to goingconcern and using the going concern basis of accounting unless Board of Directors eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so. The Board of Directors is also responsible for overseeing the Company'sfinancial 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. As part of an audit in accordance with SAs weexercise professional judgment and maintain professional scepticism 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 insufficient 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 financial controls 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 thereasonableness of accounting estimates and related disclosures made by management.Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 a 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 withgovernance regarding among other matters the planned scope and timing of the audit andsignificant audit findings including any significant deficiencies in internal controlthat we identify during our audit. We also provide those charged with governance with astatement that we have complied with relevant ethical requirements regarding independenceand to communicate with them all relationships and other matters that may reasonably bethought to bear on our independence and where applicable related safeguards. From thematters communicated with those charged with governance we determine those matters thatwere of most significance in the audit of the financial statements of the current periodand are therefore the key audit matters. We describe these matters in our auditor's reportunless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

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) of the Act we give in“Annexure A” a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by Section 143(3) of the Act based on our audit we report that: a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit; b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; c) The Balance Sheet the Statement of Profitand Loss (including Other Comprehensive Income) Statement of Changes in Equity and theCash Flow Statement dealt with by this Report are in agreement with the books of account;d) In our opinion the aforesaid financial statements comply with the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules2014; e) on the basis of written representations received from the directors as on31 March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 from being appointed as a director in terms of Section164 (2) of the Act; f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in “Annexure B”; and g) With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 as amended in our opinion and to the best of ourinformation and according to the explanations given to us: (i) The Company has disclosedthe impact of pending litigations on its financial position in its financial statementsRefer Note 34 to the financial statements; (ii) The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. (iii) There were no amounts which were required to be transferred to the InvestorEducation and protection Fund by the Company; and (iv) The disclosures requirementsrelating to holdings as well as dealings in specified bank notes were applicable for theperiod from 8 November 2016 to 30 December 2016 which are not relevant to these financialstatements. Hence reporting under this clause is not applicable.

3. With respect to the matter to be included in the Auditor's Report in accordance withthe requirements of section 197(16) of the Act as amended: In our opinion and accordingto the information and explanations given to us the remuneration paid by the Company toits directors during the year is in accordance with the provisions of section 197 readwith schedule V of the Act.

For DBS & Associates
Chartered Accountants
FRN - 081627N
Place: Mumbai
Date: July 24 2020
CA Roxy Teniwal
Partner
Membership No. 141538
UDIN: 20141538AAAAAJ2542

“ANNEXURE A” TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF TUNI TEXTILE MILLS LIMITED

Referred to in paragraph 1 under the heading of “Report on Other Legal andRegulatory Requirements” of our report of even date In terms of information andexplanations given to us and the books and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that: i. (a) The Company hasmaintained records showing full particulars including quantitative details and situationof its fixed assets; (b) We have been informed that the management has at reasonableintervals during the year physically verified major portion of the fixed assets. Nomaterial discrepancies as represented to us were noticed on such verification; and (c)According to the representation made and to the best of our knowledge and belief thetitle deeds of immovable properties are held in the name of the company. ii. As explainedby the management the inventories have not been physically verified at the close of theyear by the management due to lockdown. In our opinion the frequency of verificationneeds to be increased. However no material discrepancies as represented to us werenoticed on verification of inventories during the year. iii. The Company has during theyear not granted any loans secured or unsecured to companies firms limited liabilitypartnership or other parties covered in the register maintained under section 189 of theAct. Accordingly the provisions of clauses (a) (b) and (c) of paragraph 3 (iii) of theOrder are not applicable; iv. In our opinion and according to the information andexplanations given to us the Company has not granted any loans made any investmentsgiven any guarantee or provided any security in connection with a loan during the year.Therefore the provisions of section 185 and 186 of the Act have not been applicable to theCompany; v. the Company has not accepted any deposit from the public and hence thedirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules2015 with regard to the deposits accepted from the public are not applicable; vi. theCentral Government has not specified the maintenance of cost records under sub section 1of Section 148 of the Act for any of the products of the Company for the year under audit;vii. In case of in respect of Statutory Dues; a) on the basis of books and recordsexamined by us the following undisputed statutory dues have delayed been deposited withthe appropriate authorities:

Sr. No. Nature Amount in Due date Date deposited on
a. Provident Fund 19926 20/06/2019 04/07/2019
19926 20/07/2019 13/08/2019
19926 20/08/2019 23/08/2019
19926 20/09/2019 26/09/2019
19926 20/10/2019 04/11/2019
19926 20/11/2019 30/12/2019
19926 20/12/2019 31/12/2019
20480 20/01/2020 02/03/2020
19926 20/02/2020 02/03/2020
18344 20/03/2020 06/08/2020
16660 20/04/2020 06/08/2020
b. Professional Tax 15775 30/04/2019 30/05/2019
15775 31/05/2019 10/07/2019
16575 30/06/2019 13/08/2019
16500 31/07/2019 23/08/2019
14425 31/08/2019 26/09/2019
17225 30/09/2019 04/11/2019
16000 31/10/2019 26/12/2019
17600 30/11/2019 26/12/2019
17975 31/12/2019 25/01/2020
19275 31/01/2020 28/02/2020
18525 29/02/2020 06/08/2020
15000 31/03/2020 06/08/2020
c. ESIC 6626 15/05/2019 30/12/2019
5400 15/06/2019 30/12/2019
4498 15/07/2019 30/12/2019
3836 15/08/2019 30/12/2019
3702 15/09/2019 30/12/2019
4226 15/10/2019 30/12/2019
3961 15/11/2019 30/12/2019
3124 15/12/2019 30/12/2019
2469 15/01/2020 02/03/2020
2702 15/02/2020 02/03/2020
3061 15/03/2020 06/08/2020
1343 15/04/2020 06/08/2020

There are no arrears of undisputed statutory dues as at 31st March2020 forthe period of more than six months from the date they became payable; and b) according tothe information the dues in respect of income tax sales tax service tax goods andservices tax w.e.f. 1 July 2017 duty of custom duty of excise value added tax that havenot been deposited on account of any dispute with the appropriate authorities where thedisputes are pending are as under:

Name of Statute Nature of Dues Amount ( ) Period to which the amount relates* Due date as per notice of demand
Income Tax Act Interest 947334 1995-1996 10.05.2001
Income Tax Act Interest 338640 1996-1997 19.09.2003
Income Tax Act Interest 158134 1997-1998 19.09.2003

For the above demands as informed to us the Company has filed waiver petitions beforeChief Commissioner of Income Tax for waiver of interest those petitions are pending to beheard; The waiver of above demands has been considered in scheme of rehabilitation byBIFR; The Company has represented before the Tax Recovery Officer to give effect to theorder of Honorable BIFR. viii. on the basis of selective checks carried out during thecourse of audit we are of the opinion that the Company has not defaulted in the repaymentof loans or borrowing to banks There had been no dues payable to financial institutionGovernment or debenture holders; ix. according to the representation made and to thebest of our knowledge and belief the company has not raised moneys by way of initialpublic offer or further public offer including debt instruments and term loans during theyear. x. according to the representation made and to the best of our knowledge andbelief no fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit; xi. according to the information andexplanations given to us 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 Act; xii. In our opinion the Company is not a Nidhi Company.Therefore the provisions of clause 3 (xii) of the Order are not applicable to theCompany; xiii. according to the representation made and to the best of our knowledge andbelief all transactions with the related parties are in compliance with section 177 and188 of the Act and the details have been disclosed in the Financial Statements as requiredby the applicable accounting standards; xiv. according to the representation made and tothe best of our knowledge and belief the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. Therefore the provisions of clause 3 (xiv) of the Order are not applicableto the Company; xv. according to the representation made and to the best of our knowledgeand belief the company has not entered into any non-cash transactions with directors orpersons connected with him. Therefore the provisions of clause 3 (xv) of the Order arenot applicable to the Company; and xvi. In our opinion the company is not required to beregistered under section 45 IA of the Reserve Bank of India Act 1934 and therefore theprovisions of clause 3 (xvi) of the Order are not applicable to the Company.

For DBS & Associates
Chartered Accountants
FRN - 081627N
Place: Mumbai
Date: July 24 2020
CA Roxy Teniwal
Partner
Membership No. 141538
UDIN: 20141538AAAAAJ2542

Annexure B to the Independent Auditor's Report

The Annexure referred to in the Independent Auditor's Report to the members of theCompany on the financial statements for the year ended 31 March 2020 Report on theInternal Financial Controls over financial reporting under section 143(3)(i) of theCompanies Act 2013 (“the Act”)

1. We have audited the internal financial controls over financial reporting of TuniTextile Mills Limited (“the Company”) as of 31 March 2020 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

2. The Board of Directors of the Company is responsible for establishing andmaintaining internal financial controls based on the Internal Control over FinancialReporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (“theICAI”). 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's policiessafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the the Act.

Auditor's Responsibility

3. 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”) issued by the ICAI and the Standards on Auditingprescribed under section 143(10) of the Act to the extent applicable to an audit ofInternal Financial Controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate Internal Financial Controls over Financial Reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the Internal Financial Controls System over Financial Reporting and their operatingeffectiveness. Our audit of Internal Financial Controls over Financial Reporting includedobtaining an understanding of Internal Financial Controls over Financial Reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. 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

6. A company's Internal Financial Control over Financial Reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's Internal Financial Control overFinancial Reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. 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

8. In our opinion to the best of our information and according to the explanationsgiven to us the company has in all material respects adequate Internal FinancialControl System over Financial Reporting and such Internal Financial Control over FinancialReporting were operating effectively as at 31 March 2020 based on the Internal Controlover Financial 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 ICAI.

For DBS & Associates
Chartered Accountants
FRN - 081627N
Place: Mumbai
Date: July 24 2020
CA Roxy Teniwal
Partner
Membership No. 141538
UDIN: 20141538AAAAAJ2542