We have audited the accompanying financial statements
of ADINATH TEXTILES LIMITED(“the Company”), which
comprise the Balance Sheet as at 31st March, 2024, and
the Statement of Profit and Loss (including Other
Comprehensive Income), the Cash Flow Statement and
the Statement of Changes in Equity for the year then
ended and a summary of significant accounting policies
and other explanatory information (hereinafter referred
to as “the financial statements”).
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
financial statements give the information required by the
Companies Act 2013 (“the Act”) in the manner so
required and give a true and fair view in conformity with
the Ind AS and accounting principles generally accepted
in India, of the state of affairs of the Company as at 31st
March, 2024 and its net profit, its cash flows, total
comprehensive income and the changes in equity for the
year ended on that date.
Basis for Opinion
We conducted our audit of the financial statement in
accordance with Standard on Auditing (SAs) specified
under section 143(10) of Act. Our responsibilities under
those Standards are further described in Auditor’s
Responsibilities for the Audit of Financial Statements
section of our report. We are independent of the
Company in accordance with the Code of Ethics issued
by Institute of Chartered Accountants of India (ICAI)
together with the Independence requirement that are
relevant to our audit of the Financial Statement under the
provisions of the Act and the Rule made there under , and
we have Fulfilled our other ethical responsibilities. We
believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the financial statement.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the financial statements of the current period. We
have determined that there are no key audit matters to
communicate in our report.
Information Other than the Financial Statements and
Auditor's Report thereon
The Company’s Board of Directors is responsible for the
preparation of the other information. The other
information included in the Management Discussion and
Analysis, Board’s Report including Annexure to Board’s
Report, Business Responsibility Report, Corporate
Governance and Shareholder’s Information, but does
not include the financial statements and our auditor’s
report thereon.
Our opinion on the financial statements does not cover
the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements,
our responsibility is to read the other information and, in
doing so, consider whether the other information is
materially inconsistent with the financial statements or
our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there
is a material misstatement of this other information, we
are required to report that fact. We have nothing to report
in this regard.
Responsibilities of Management and Those Charged
with Governance for Financial Statement
The Company’s Board of Directors is responsible for the
matter stated in Section 134(5) of the Companies Act,
2013 (“the Act”) with respect to preparation of these
financial statements that give a true and fair view of the
financial position, financial performance, cash flows and
changes in equity of the Company in accordance with the
accounting principles generally accepted in India,
including the Indian Accounting Standards(Ind AS)
prescribed under Section 133 of the Act read with the
relevant rules issued there under. This responsibility also
includes maintenance of adequate accounting records in
accordance with the provisions of the Act for
safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting
policies; making judgments and estimates that are
reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to
the preparation and presentation of the Ind AS financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is
responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless management either
intends to liquidate the Company or to cease operations,
or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing
the Company’s financial reporting process.
Auditor's Responsibility for the audit of the Financial
Statement
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due 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 audit conducted in accordance
with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud or
error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, mis¬
representations, or the override of internal control.
• Obtain an understanding of internal financial controls
relevant to the audit in order to design 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 has adequate internal financial controls
system in place and the operating effectiveness of
such controls.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting
estimates and related disclosures made by
management.
• Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a
material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the
related disclosures in the standalone 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’s
report. However, future events or conditions may
cause the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and
content of the standalone financial statements,
including the disclosures, and whether the
standalone financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.
• Materiality is the Magnitude of misstatements in the
financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial
statements may be influenced. We consider
quantitative materiality and qualitative factors in:
a) Planning the scope of our audit work and in
evaluating the results of our work; and
b) To evaluate the effect of any identified
misstatements in the financial statements.
We comm unicate with th ose charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
ide n t ify during our audit.
We als o provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to
communicate with them all relationships and other
matte rs that may reaso nab ly be thought to bear on our
independence, and where applicable, related
safeg uards.
From the matters communicated with those charged with
govern ance, we determine those matters that were of
most significance in the audit of the standalone financial
statements of the current period and are therefore the
key audit matters. We describe these matters in our
audi tor’s re port unless law or regulation precludes public
disci osure about th e matter or when, in extremely rare
circumstances, we determine that a matter should not be
communicated in our report because the adverse
consequences of doing so would reasonably be
expected to outweigh the public interest benefits of
such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report)
Order, 2020 (“the Order”) issued by the Central
Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the “Annexure A”, a
statement on the matters specified in the paragraph 3
and 4 of the order.
2. As required by Section 143(3) of the Act, we report
that:
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purpose of our audit;
b) In our opinion proper books of account as required by
law have been kept by the Company so far as
appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss,
Cash Flow Statement and the Statement of Changes
in Equity dealt with by this Report are in agreement
with the books of account.
d) In our opinion, the aforesaid Ind AS financial
statements comply with the Indian Accounting
Standards specified under section 133 of the
Companies Act, 2013, read with relevant rules issued
there under.
e) On the basis of written representations received from
the directors as on March 31, 2024, and taken on
record by the Board of Directors, none of the directors
is disqualified as on March 31, 2024, from being
appointed as a director in terms of Section 164 (2) of
the Companies Act, 2013;
f) With respect to the adequacy of the internal financial
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to
our separate report in “Annexure B”; and
g) With respect to the other matters to be included in the
Auditor’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 the explanations given to us:
i. The Company has disclosed the impact of
pending litigations on its financial position in its
financial statement. Refer clause vii(a) of the
annexure- A to the audit report.
i i. The Company did not have any long term
contracts including derivative contracts for which
there were any material foreseeable losses.
iii. There were no amounts which were required to
be transferred to the Investor Education and
Protection Fund by the Company.
i v. (a ) Th e Management has represented that, to the
best of its knowledge and belief, no funds (which
are material either individually or in the
aggregate) have been advanced or loaned or
invested (either from borrowed funds or share
premium or any other sources or kind of funds) by
the Company to or in any other person or entity,
including foreign entity (“Intermediaries”), with
the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether,
directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Company
(“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
(b) The Management has represented, that, to the
best of its knowledge and belief, no funds (which
are maters eith er individually or in the
aggreg ate) have been received by the Company
from any perso n or entity, including foreign entity
(“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the
Company shall, whether, directly or indirectly,
lend or invest in other persons or entities
identified in any manner whatsoever by or on
behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been
considered reasonable and appropriate in the
circumstances, nothing has come to our notice
that has caused us to believe that the
representations under sub-clause (i) and (ii) of
Rule 11(e), as provided under (a) and (b) above,
contain any material misstatement.
V. Th e compan y has not declared or paid any dividend
during the year therefore the provisions of sec.123 of
the C ompa ni es Act 2013 are not applicable.
VI. The reporting under Rule 11 (g) of the Companies
(Audit & Auditors) Rules, 2014 is applicable from 1st
April, 2023 Based on our examination, which includes
test checks, except for the instances mentioned
below, the company, has used an accounting
software for maintaining its books of account which
has feature of recording audit trail (edit log) facility
and the same has operated throughout the year for
all relevant transactions recorded in the software.
Further, during the course of our audit, we did not
come across any instance of audit trail feature being
tampered with.
For Kamboj Malhotra & Associates
Chartered Accountants
Firm’s Reg. No. 015848N
Sd/-
Place : Ludhiana CA Manik Malhotra
Date : 15th July, 2024 Partner
Membership No. 094604
UDIN : 24094604BKEBKC1244
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