We have audited the accompanying financial statements of
Eurotex Industries and Exports Limited (“the Company”),
which comprises of Balance Sheet as at March 31, 2024, the
Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity and the Statement
of Cash Flow 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 Indian Accounting
Standards prescribed under Section 133 of the Act read with
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
March 31, 2024, its losses including total comprehensive
income, its changes in equity and its cash flows for the year
ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on
Auditing (SAs) specified under Section 143 (10) of the Act. Our
responsibilities under those Standards are further described in
the Auditor’s Responsibilities for the Audit of the 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 independence requirements that are relevant to our audit of
the 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 we
have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the financial statements.

Material Uncertainty Related to Going Concern

Without qualifying, we draw your attention to note no. 40 of the
financial statements with respect to the fact that the financial
statements have been prepared on a going concern basis, which
contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business though the Company
has incurred cash loss during the current year, losses during last
many years, having eroded its entire net worth and that the
operations of the manufacturing plants at Kolhapur have

continued grinding halt since 25th March, 2019 and
announcement of their closure on 30th March, 2022. The
management has settled dues of lender banks (by borrowing
from promoter group companies), is studying ways to revive
operations of the Company as also to undertake the further
development of available land area at Kolhapur in near future
and in view of such positivities, the financial statements have
been prepared on a going concern basis.

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. These matters were addressed
in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the
matters described below to be the key audit matters to be
communicated 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 other information. The other information
comprises the information included in the Management
Discussion and Analysis, Board’s Report including Annexures
to the Board Report, Corporate Governance report and

Shareholder’s information, but does not include the financial
statement 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.

Management’s Responsibility for the 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 financial statements that give a true and
fair view of the financial position, financial performance, total
comprehensive income, changes in equity and cash flows of the
Company in accordance with 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 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 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, the 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 also responsible for overseeing the
Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial
Statements

Our objectives are to obtain reasonable assurance about
whether the financial statements 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
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, misrepresentations, or the
override of internal control.

• Obtain an understanding of internal 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 control 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
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 entity’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 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 entity to cease to
continue as a going concern.

• Evaluate the overall presentation, structure and content of
the financial statements, including the disclosures, and
whether the 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 (i) planning the

scope of our audit work and in evaluating the results of our work
and (ii) to evaluate the effect of an identified misstatements in
the financial statements.

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 identify 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 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 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. Pursuant to 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
paragraphs 3 and 4 of the Order, to the extent applicable.

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 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 it
appears from our examination of those books and
records except for the matters stated in the paragraph
h (vi) below on reporting under Rule 11(g).

(c) The Balance sheet, the Statement of Profit & Loss
(including other comprehensive income), Statement of
Changes in Equity and the Cash 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 Standards specified under
Section 133 of the Act, read with the Companies
(Indian Accounting Standards) Rules, 2015, as

amended.

(e) On the basis of the written representation received
from the directors as on March 31, 2024 taken on
records by the Board of Directors, none of the
directors are disqualified as on March 31, 2024 from
being appointed as Directors 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 “B”. Our report
expresses an unmodified opinion on the adequacy and
operating effectiveness of the Company’s internal
financial control 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 matters to be included in the
Auditor’s report in accordance with the Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, the
modification relating to the maintenance of accounts
and other matters connected therewith are as stated in
the paragraph (b) above on reporting under Section
143(3)(b) and paragraph vi below on reporting under
Rule 11(g), 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
statements- (Refer Note No. 32.1. to financial
statements)

ii. 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.

iv. (a) The Management has represented that, to the best
of its knowledge and belief, no funds other than those
disclosed in financial statements, 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, 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 other than those
disclosed in financial statements, 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, 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; and

(c) Based on such 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) contain any material mis¬
statement. (Refer Note No 41(v) and (vi) to the financial
statements).

v. The Company has not declared or paid any dividend

during the financial year. Accordingly, reporting under
Rule 11(f) of Companies (Audit and Auditors) Rules,
2014 is not applicable.

vi. Based on our examination which included test checks
and according to the information and explanations
given to us, the Company has used an accounting
software for maintaining its books of account which do
not have a feature of recording audit trail (edit log)
facility, though the accounting software doesn’t have
the facility of giving any edit rights to its users. As
explained in Note 32.10, Company is in the process of
updating its accounting software to comply with audit
trail requirements as envisaged under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014.

As proviso to Rule 3(1) of the Companies (Accounts) Rules,
2014 is applicable from 01st April, 2023, reporting under Rule
11(g) of the Companies (Audit and Auditors) Rules, 2014 on
preservation of audit trail as per the statutory requirements for
record retention is not applicable for the financial year ended
31st March, 2024.

For Lodha & Co LLP

Chartered Accountants
Firm Registration No: 301051E/E300284
A M Hariharan

Partner

Membership No: 038323
UDIN:24038323BKFVPI8441

Place : Mumbai
Date : May 24, 2024