We have audited the accompanying standalone financial statements of Active
Clothing Co Limited (“the Company”), which comprise the Balance sheet as at 31st
March, 2025, and the Statement of Profit and Loss, the Cash Blow Statement and the
Statement of Changes in Equity for the Year ended, and a summary of significant
accounting policies and other explanatory information.
In our Opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information
required by the Companies Act, 2013 (“ihe Act") in the manner so required and give
a true and fair view in conformity with the Indian Accounting Standards prescribed
under section 133 of the Act read with the Companies ( Indian Accounting
Standards) Rules, 2015, as amended ( “ Ind AS”) and other accounting principles
generally accepted in India, of the state of affairs of the Company as at 31st
March,2025, and its profit, total comprehensive income, its cash flows and the
changes in equity for the year ended on that date.
BASIS OF OPINION
We conducted our audit of the standalone financial statements in accordance with
the Standards on Accounting specified under section 143(10) of the Act (SAs). Our
responsibilities under those Standards are further described in the Auditor’s
Responsibility for the Audit of the Standalone Financial Statements section of our
report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with
the ethical requirements that are relevant to our audit of the Standalone Financial
Statements under the provisions of the Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is
sufficient and appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Information Other that the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and
Analysis Report, Business Responsibility Report, Director’s Report including annexures
to the Director’s Report and Corporate Governance Report, but does not include
the consolidated financial statements, standalone financial statements and our
auditor's report thereon.
• Our opinion on the standalone 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 standalone financial statements, our
responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the standalone
financial statements of 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.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position, financial
performance including other comprehensive income, cash flows and changes in
equity of the Company in accordance with the Ind AS and other accounting
principles generally accepted in India. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecling 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 standalone
financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone 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.
Auditor’s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
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 is 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 standalone
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 misslaternent resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an underslanding of internal financial control 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 the
management.
• Conclude on the appropriateness of management’s use of fhe going
concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainly 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 or 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 stafemenfs represent the underlying transactions and events in a
manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the standalone financial statements may be
influenced. We consider quantitative materiality and qualitative factors in (i)
planning the scope of our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the standalone financial
stafemenls.
We communicate with those 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 indentify during our
audit.
We also 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 matters that may reasonably be
thought to bear on our on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, 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 auditor’s report unless law or
regulation precludes public disclosure about the 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 Section 143(3) of the Companies Act 2013, based on our Audit
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
purposes of our Audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as if appears from our examination of
those books.
c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow
Statement and Statement of Changes in Equity dealt with by this
Report are in agreement with the books of account.
d) In our opinion, the aforesaidstandalone financial statements comply
with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors
as on 31st March, 2025 taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2025 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
financial reporting of the Company and the operating effectiveness of
such controls, refer to our Separate Report in “Annexure A”, our report
expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company’s internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditor's Report
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 the
explanations given to us, the remuneration paid by the Company to its
directors during the year 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’s Report
in accordance with Rule 1 1 of the Companies (Audit and Auditors)
Rules, 2014, as amended 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 standalone financial statements .
ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii) a) the Management has represented that, to the best of it's
knowledge and belief to the financial statements, no funds 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(s) or entity(ies), including
foreign entities (“Intermediaries”), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall,
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 it’s
knowledge and belief , no funds have been received by the
Company from any person(s) or entity(ies), including foreign
entities (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Company shall, 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 performed 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.
2. As required by the Companies ( Auditor's Report) Order, 2020 (“the Order”)
issued by the Central Government in terms of Section 143 (11) of the Act, we
give in “ Annexure B” a statement on the matters specified in paragraphs 3
and 4 of the Order.
FOR KAPOOR RAJESH & ASSOCIATES,
CHARTERED ACCOUNTANTS.
Sd/-
( DEEPAK BHATT )
Partner
DATE : 30.05.2025 Membership No. 532529
PLACE: Mohali Firm Registration No. 015350N
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