We have audited the accompanying IND AS financial statements of GANGOTRI TEXTILES LIMITED
(“the Company”), which comprise the Balance Sheet as at March 31,2024, the Statement of Profit
and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement
of Changes in Equity for the year ended 31-3-2024 and a summary of the significant accounting
policies and other explanatory information. (hereinafter referred to IND AS financial statements)
Management’s Responsibility for the IND AS Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134 (5) of
the Companies Act, 2013 (“the Act”) with respect to the preparation of these IND AS 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 Indian Accounting Standards (IND AS) prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as amended, 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 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.
Auditors’ Responsibility
Our responsibility is to express an opinion on these IND AS financial statements based on our
audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in the audit report under
the provisions of the Act and the Rules made there under and the Order issued under section 143
(11) of the Act. We conducted our audit of the IND AS financial statements in accordance with the
Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the IND AS financial statements are free from material misstatement. An audit
involves performing procedures to obtain audit evidence about the amounts and the disclosures in
the IND financial statements. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the IND AS financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal financial
control relevant to the Company’s preparation of the IND AS financial statements that give a true and
fair view in order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company’s directors, as well as evaluating the overall
presentation of the IND AS financial statements. We believe that the audit evidence obtained by us is
sufficient and appropriate to provide a basis for our audit opinion on the IND AS financial statements
BASIS FOR QUALIFIED OPINION
1. In our opinion, there prevails material uncertainty related to events / conditions which eventually
/ collectively cast significant doubts on going concern assumption. The Board of Directors
in their meeting held on 06.08.2019 decided to voluntarily wind up the Company. A special
resolution to this effect was also brought before the shareholders for their approval in the 30th
AGM of the Company held on 27.09.2019. Now, the company is proposing to initiate Corporate
Insolvency Resolution Process before the Hon;ble National Company Law Tribunal at Chennai
under Section 10 of the Insolvency and Bankruptcy Code, 2016. The Board of Directors in their
meeting held on 8-11-2023 have discussed and given their consent to authorize Sri. Manoj
Kumar Tibrewal, Managing Director of the Company to initiate Corporate Insolvency Resolution
Process before the Hon;ble National Company Law Tribunal at Chennai under Section 10 of the
Insolvency and Bankruptcy Code, 2016 or before any other appropriate Legal Forums as and
when required,
2. The interest provisions for all Loans from Banks has not been worked out since the date of
taking over of assets by the bank during the year 2015. We could not able to quantify the interest
amount.
3. The balances shown under Secured loans and Balances with bank. Confirmation of balance is
yet to be given by the Bankers. Hence, the balances reflected under these two heads are as per
the books of account of the company.
QUALIFIED OPINION
In our opinion and to the best of our information and according to the explanations given to us,
except for the effects of the matter described on the Basis for Qualified Opinion paragraph above,
the aforesaid IND AS financial statements give the information required by the Act in the manner
so required and give a true and fair view in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31,2024, and its profit, total
comprehensive income, the cash flows and the changes in equity for the year ended as on that date
KEY AUDIT MATTERS
Key Audit Matters are those matters that, in our professional judgments, were of most significance
in our audit of the financial statements of the current period. These matters were addressed in the
contexts of our audit of the financial statements as a whole, and in forming our opinion there on, and
we do not provide a separate opinion on these matters. We have nothing to report in this regard.
Information other than the Financial Statements and Auditor’s Report thereon;
(i) The Company’s Board of Directors is responsible for the other information. The other information
comprised of 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.
(ii) Our opinion on the Financial Statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
(iii) 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.
(iv) 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 sec 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 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 asset 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 statement that give a true and fair view and are free
from material misstatement whether due to fraud or error.
In preparing the financial statement, 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 as no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the company’s financial reporting
process.
AUDITOR’S RESPONSIBILITY FOR THE AUDIT OF THE FINANCIAL STATEMENTS
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
aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As a part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(i) 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.
(ii) Obtain an understanding of internal financial control relevant to the audit in order to design audit
procedures that are appropriate in 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.
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the management.
(iv) Conclude on the appropriateness of the 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 exist, 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 Company to cease to continue as a going concern.
(v) 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.
Materially is the magnitude of misstatements in the financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledge 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 any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned
scope 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. 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 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 purposes of our audit.
(b) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph
above, 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;
(c) The balance sheet, the statement of profit and loss and the cash flow statement dealt with by
this Report are in agreement with the books of account;
(d) Except for the effects of the matters described in the basis for qualified opinion paragraph
above, the aforesaid IND AS financial statements comply with the Indian Accounting
Standards prescribed under section 133 of the Act
(e) The matters described on the Basis for Qualified Opinion paragraph above, in our opinion,
may have adverse effect on the functioning of the Company.
(f) On the basis of the written representations received from the directors as on 31 March 2024
taken on record by the Board of Directors, none of the directors is disqualified as on 31
March 2024 from being appointed as a director in terms of Section 164 (2) of the Act;
(g) The qualification relating to the maintenance of accounts and other matters connected
therewith are as stated on the Basis for Qualified Opinion paragraph above
(h) 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
standalone IND AS financial statements - Refer Note 24 to the financial statements;
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company.
For. K.N Swamy & Co
Chartered Accountants
K.Narayanasamy
Coimbatore Partner
29/05/2024 Firm Regn No : 004321S
Membership No : 018956
UDIN: 24018956BKAICD9169
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