You are here » Home » Companies » Company Overview » Vijay Textiles Ltd

Vijay Textiles Ltd.

BSE: 530151 Sector: Industrials
NSE: N.A. ISIN Code: INE256G01033
BSE 00:00 | 14 Feb 29.80 0
(0.00%)
OPEN

29.00

HIGH

30.65

LOW

27.10

NSE 05:30 | 01 Jan Vijay Textiles Ltd
OPEN 29.00
PREVIOUS CLOSE 29.80
VOLUME 1962
52-Week high 41.70
52-Week low 17.10
P/E 28.93
Mkt Cap.(Rs cr) 46
Buy Price 27.00
Buy Qty 125.00
Sell Price 32.55
Sell Qty 25.00
OPEN 29.00
CLOSE 29.80
VOLUME 1962
52-Week high 41.70
52-Week low 17.10
P/E 28.93
Mkt Cap.(Rs cr) 46
Buy Price 27.00
Buy Qty 125.00
Sell Price 32.55
Sell Qty 25.00

Vijay Textiles Ltd. (VIJAYTEXTILES) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

VIJAY TEXTILES LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Standalone financial which comprise the Balance Sheetas at 31 March 2019 the Statement of Profit and loss (including Other ComprehensiveIncome) the Statement of changes in Equity and the Statement of Cash flow for the yearended on that date and notes to financial statements including a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under Section 133of the Act read with the Companies (Indian Accounting Standards) Rule 2015as amended("Ind As") and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March2019 the profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the 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 Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on the financialstatements.

Key Audit Matter

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 matters described below to be the key audit matters to be communicatedin our report.

S.No Key Audit Matters Auditors response
Provision for Bad and Doubtful debts
1 Amounts are receivable from few debtor outstanding for more than 365 days. Creation of Provision for Bad and Doubtful debts management judgment about involves significant recoverability of receivables from Debtors. Amounts due for more than 365 days is attributable to general downfall in the industry. Management is confident that amount will be recovered in the due course as the business is showing signs of good pick up and till date there has been no default done by any party
Delay in Payment of loan installments
2 Generally all the term loan installments are duly paid with minute delay the installment for the month of Jan'19 Feb'19 & March'19 was not paid on the due date. On verification it was found that installment for the month of Jan'19 and Feb'19 was paid subsequently however the management has confirmed that the installment for the month of Mar'19 will duly be repaid shortly.

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

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Report and Chairman'sstatement but does not include the financial statements and our auditor's report thereon.The Management Report and Chairman's Statement is expected to be made available to usafter the date of this Auditor's Report.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the management report and chairman's statement if we conclude that thereis a material misstatement therein we are required to communicate the matter to thosecharged with governance and describe actions applicable in the applicable laws andregulations

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation and presentation of these 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 accounting principles including the Indian Accounting Standards(‘Ind AS') specified under Section 133 of the Act. The respective Board of Directorsof the Company are responsible for maintenance of the adequate accounting records forsafeguarding assets of the Company and for preventing and detecting frauds and otherirregularities; 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 are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors of the Company areresponsible 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.

Those Board of Directors of the Company are responsible for overseeing the financialthe Company.

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 withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional skepticism 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 is sufficient 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 inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern.

If we conclude that a material uncertainty exists we are required to draw attention inour auditor's report to the related disclosures in the financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a 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 areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-Section (11) of Section 143 ofthe Companies Act 2013 we give in the Annexure A a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

1. As required by Section 143 (3) of the Act we report that:

(a) W e 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;

(c) The Balance Sheet the Statement of Profit and Flow Statement and the Statement ofChanges in Equity dealt with by this report are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the IND AS specifiedunder Section 133 of the Act read with rule 7 of Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the Directors and takenon record by the Board of Directors none of the Directors is disqualified as on 31 stMarch 2019 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B"; and

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 24.1 to the financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Laxminiwas & Co.
Chartered Accountants
Firm's Registration Number: 011168S
Sd/-
Vijay Singh
Hyderabad Partner
27th May 2019 Membership Number: 221671

Annexure A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the Members of the Companyon the financial statements for the year ended 31st March 2019 we report that:

(i). a. The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b. All the assets are not physically verified by the Management during the year asthere is a phased programme of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieshave been noticed on such verification.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii). The inventory has been physically verified on sample basis by the managementduring the year. The discrepancies noticed on verification between the physical stocks andthe book/records were not material nevertheless those have been dealt properly within thebooks of accounts.

(iii). According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013. Accordingly para 3(iii) (a) (b) and (c) of the order are notapplicable.

(iv). In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the loans and investments made.

(v). In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of Section 73 to76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder.

(vi). W e have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2014 as amended and prescribed by theCentral Government under sub-Section (1) of Section 148 of the Companies Act 2013 andare of the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii). a). According to the information and explanations given to us and the records ofthe Company examined by us the Company is generally regular in depositing withappropriate authorities undisputed statutory dues including Provident Fund Employees'State Insurance Income tax Customs duty Cess Goods and Service Tax and any otherstatutory dues applicable to it as on 31st March 2019.

b). According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms service tax cess Goods and Service Tax and other material statutory dues werein arrears as at 31st March 2019 for a period of more than six months from the date theybecame payable.

Type of Dues Assessment year Amount Outstanding as on 31.03.2019 Amount Outstanding as on 31.03.2018 Appeal Pending with
Income Tax 2009-10 8836190 8836190 CIT Appeals – IV

c). According to the information and explanations given to us there are no dues ofIncome tax Customs duty and Goods and Service Tax which have not been deposited with theappropriate authorities on account of any dispute except as under:

(viii). According to the information and explanation given to us the Company hasdefaulted in following repayment of dues to bank as at balance sheet date: -

Particulars Month of default Amount of default as at the balance sheet date Remarks if any.
Axis Jan'19 1680000 Paid in Month of Apr'19
Feb'19 1680000 Paid in Month of May'19
Mar'19 1680000 Will be paid in following month
SBI Jan'19 8812000 Paid in Month of Apr'19
Feb'19 8812000 Paid in Month of May'19
Mar'19 8812000 Will be paid in following month
SBI Jan'19 2924032 Paid in Month of Apr'19
Feb'19 2924032 Paid in Month of May'19
Mar'19 2924032 Will be paid in following month
Total 40248096

(ix). The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x). According to the information and explanations given to us no material fraud bythe Company or on the Company by its officers or employees has been noticed or reportedduring the course of our audit.

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

(xii). In our opinion and according to the information and explanations given to usthe Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

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

(xiv). According to the information and explanations given to us and based on ourexamination of the records of the Company

a. The Company has made preferential allotment of 2165000 equity shares pursuant toConversion of warrants as against the allotted 6595000 warrants.

b. The Company has made private placement of 500000 convertible warrants during theyear under review

(xv). W e further report that the requirement of section 42 of the Act as applicablehave been complied with; and the amount raised have been applied by the Company during theyear for the purposes for which the funds were raised.

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

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

For Laxminiwas & Co.
Chartered Accountants
Firm's Registration Number: 011168S
Sd/-
Vijay Singh
Hyderabad Partner
27th May 2019. Membership Number: 221671

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of VijayTextiles Limited ("the Company") as of 31st March 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 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

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 issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 about the adequacy ofthe 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 judgement including the assessment of the risks ofmaterial misstatement 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and Directors of the Company; and (3) Provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the Company's assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In 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 31st March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Laxminiwas & Co.
Chartered Accountants
Firm's Registration Number: 011168S
Vijay Singh
Hyderabad Partner
27th May 2019. Membership Number: 221671