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Ventura Textiles Ltd.

BSE: 516098 Sector: Industrials
NSE: N.A. ISIN Code: INE810C01044
BSE 00:00 | 25 May 4.43 0
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NSE 05:30 | 01 Jan Ventura Textiles Ltd
OPEN 4.70
PREVIOUS CLOSE 4.43
VOLUME 150
52-Week high 9.50
52-Week low 3.35
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.70
CLOSE 4.43
VOLUME 150
52-Week high 9.50
52-Week low 3.35
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ventura Textiles Ltd. (VENTURATEXTILES) - Auditors Report

Company auditors report

To the members of Ventura Textiles Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements ofVentura Textiles Limited ("the Company") which comprise the Balance Sheet as atMarch 312021 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the Standalone Financial Statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 201 3 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312021the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements inaccordance with the Standards on Auditing specified under section 1 43(1 0) of the Act(SAs). Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Financial Statements.

Emphasis of Matter

We draw your attention to Note no 21 of the financial statements whichdescribes the negative net worth of more than 50%. The accumulated losses of the companyis 343360898 as on 31 st March 2021 indicating doubt of the existence of company'sability to continue as going concern. Considering the matters set out in that note thefinancial statements are prepared on going concern basis. Our opinion is not qualified inrespect of these matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements of thecurrent period. These matters were addressed in the context of our audit of the StandaloneFinancial Statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Revenue Recognition under IND AS 115: Revenue from contract with customers: Sales and Rental Income How our audit assessed the key matter
The main business of the company is to manufacture cotton yarn. Our audit procedures on revenue recognized from fixed price contracts includes:
The company has also let-out its warehouse under leave and license agreement • Obtained an understanding of the system processes and controls implemented by company for recording and computing revenue.
We identified revenue recognition of Sales and rental incomes a Key Audit Matter since: • Analyzed the process of sale.
a. the major income of the company is through the sale of cotton yarn • Analyzed various leave and license agreement with the tenants
b. another main source of the company is through the rental income • With regards to information technology:
Assessed the IT environment which the business system operates in and tested the system controls over which the revenue is recognized;
Tested IT controls over appropriateness of cost and revenue reports generated by the system;
Tested controls pertaining to allocation of resources and budgeting systems which prevent unauthorized recording or changes to costs incurred and controls relating to the estimation of contract costs required to complete the respective projects

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the Standalone Financial Statements and our auditor's report thereon. Ouropinion on the standalone financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Financial Statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; 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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. The Board of Directors areresponsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud 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 Standalone Financial Statements.

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

i) Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

ii) Obtain an understanding of internal financial controls relevant tothe audit in order to design audit procedures that are appropriate in the circumstances.Under section 1 43(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls

iii) Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management

iv) Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone 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 conditions maycause the Company to cease to continue as a going concern

v) Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation

Materiality is the magnitude of misstatements in the StandaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Standalone FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin

i) planning the scope of our audit work and in evaluating the resultsof our work; and

ii) to evaluate the effect of any identified misstatements in theStandalone Financial Statements.

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 StandaloneFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these 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 Section 1 43(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 our audit

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 relevant books of account

D. In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules2014

E. On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

F. With respect to the adequacy of the internal financial controlswith reference to financial statements of the Company and the operating effectiveness ofsuch controls refer to our separate Report inAnnexure B" . Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company's internalfinancial controls with reference to financial statements.

G. With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

H. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 1 1 of the Companies (Audit and Auditors) Rules 201 4 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i) The Company does not have any pending litigations.

ii) Subject to the basis of qualified opinion para the Company hasmade provision as required under the applicable law or accounting standards for materialforeseeable losses if any on long-term contracts including derivative contracts

iii) The company has not declared any dividend and thus this clause isnot applicable to the company.

2. 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.

For Govind Prasad and Co
Chartered Accountants
FRN:114360W
Govind Prasad
(Partner)
Date : 30th June 2021 M. No.: 047948
Place : Mumbai UDIN: 21 047948AAAACI1 535

ANNEXURE 'A' TO THE AUDITORS' REPORT

The Annexure referred to in our report to the members of VenturaTextiles Limited for the year ended 31st March 2021.

On the basis of the information and explanation given to us during thecourse of our audit we report that:

1 . (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of its fixed assets.

(b) These fixed assets have been physically verified by the managementat reasonable intervals there was no Material discrepancies were noticed on suchverification.

(c) Total Assets of company includes Immovable property also and thetitle deeds of immovable properties are held in the name of the company.

2. Physical verification of inventory has been conducted at reasonableintervals by the management and there are no material discrepancies were noticed.

3. The company has not granted loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 1 89 of the Companies Act 201 3 thus this clause is not applicable.

4. In respect of loans investments guarantees and security allmandatory provisions of section 1 85 and 1 86 of the Companies Act 201 3 no loans orguaranty or security is provided in the current year thus this clause is not applicable.

5. The company has not taken any deposit and thus this clause is notapplicable.

6. Maintenance of cost records has not been specified by the CentralGovernment under sub-section (1) of section 1 48 of the Companies Act 201 3.

7 (a) The company is regular in depositing undisputed statutory duesincluding provident fund Employee's state insurance income-tax Goods and Service Taxduty of customs duty of excise value added tax cess and goods and service tax any otherstatutory dues wherever applicable to the appropriate authorities.

(b) Dues of income tax or sales tax or service tax or duty of customsor duty of excise or value added tax or Goods and Service Tax have been deposited on timethere is no dispute is pending on the part of company.

8. The company has made default in repayment of loans or borrowing tobank Government or dues to debenture holders.

9. The company has not raised any money by way of initial public offeror further public offer (including debt instruments) thus this clause is not applicable.

1 0. Neither company has done any fraud nor by its officers oremployees so nothing to be disclosed separately.

11 . Managerial remuneration has been paid or provided in accordancewith the requisite approvals Mandated by the provisions of section 1 97 read with ScheduleV to the Companies Act.

12. Company is not a Nidhi Company hence nothing to be disclosed forany provisions applicable on Nidhi Company.

13. All transactions with the related parties are in compliance withsections 1 77 and 1 88 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards;

14. The company hasn't made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

15. The company hasn't entered into any non-cash transactions withdirectors or persons connected with him.

16. The company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1 934.

For Govind Prasad and Co
Chartered Accountants
FRN:114360W
Govind Prasad
(Partner)
Date : 30th June 2021 M. No.: 047948
Place : Mumbai UDIN: 21 047948AAAACI1 535

ANNEXURE - B TO THE AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 201 3 ("the Act")

We have audited the internal financial controls over financialreporting of Ventura Textiles Limited ("The Company") as of 31 March 2021 inconjunction with our audit of the financial statements of the Company for the year endedon that date. Management's Responsibility for Internal Financial Controls

The Company's management 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 ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding 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 Companies Act 201 3.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 1 43(1 0) of the Companies Act 201 3 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 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 judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control 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 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 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 the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Govind Prasad and Co
Chartered Accountants
FRN:114360W
Govind Prasad
(Partner)
Date : 30th June 2021 M. No.: 047948
Place : Mumbai UDIN: 21 047948AAAACI1 535

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