I have audited the accompanying STANDALONE financial statements of Amarjothi Spinning
Mills Limited, (hereinafter referred to as “the Company”), which comprise the STANDALONE
Balance Sheet as at 31st March, 2025, and the STANDALONE Statement of Profit and Loss
account, STANDALONE Statement of changes in equity and STANDALONE Statement of CASH
FLOWS for the year ended, and notes to the standalone financial statements, including a
summary of significant accounting policies and other explanatory information (hereinafter referred
to as “The STANDALONE Financial Statements”).
In my opinion and to the best of my information and according to the explanations given to me,
the aforesaid Standalone financial statements give the information required by the Companies
Act, 2013 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, changes in equity and its CASH FLOWS for the year ended on that date.
Basis for Opinion
I conducted my audit in accordance with the Standards of Auditing (SAs) specified under section
143(10) of the Companies Act, 2013. My responsibilities under those Standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my
report. I am independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the ethical requirements that are relevant
to my audit of the Standalone financial statements under the provisions of the Companies Act,
2013 and the Rules thereunder, and I have fulfilled my other ethical responsibilities in accordance
with these requirements and the Code of Ethics. I believe that the audit evidence I have obtained
is sufficient and appropriate to provide a basis for my opinion.
Key Audit Matters
Key audit matters are those matters that, in my professional judgment, were of most significance
in my audit of the financial statements of the current period. These matters were addressed in
the context of my audit of the financial statements as a whole, and in forming my opinion
thereon, and I do not provide a separate opinion on these matters. I have not identified any key
audit matters to be communicated in my report.
Information Other than the Standalone 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 comprises the information included in the Management Discussion and
Analysis, Board’s report including Annexures to Board’s report, Business responsibility report,
Corporate Governance and Shareholder’s information, but does not include the Standalone
financial statements and my auditor’s report thereon.
My opinion on the Standalone financial statements does not cover the other information and I do
not express any form of assurance conclusion thereon.
In connection with my audit of the Standalone financial statements, my responsibility is to read
the other information and, in doing so, consider whether the other information are materially
inconsistent with the Standalone financial statements or my knowledge obtained during the
course of my audit or otherwise appears to be materially misstated.
If, based on the work I have performed, I conclude that there is a material misstatement of this
other information; I am required to report that fact. I have nothing to report in this regard.
Responsibilities of Management for the Standalone 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 Standalone financial
statements that give a true and fair view of the Standalone financial position, Standalone financial
performance, Standalone changes in equity and Standalone cash flows of the company in
accordance with the accounting principles generally accepted in India, including the Ind AS
specified under section 133 of the Act. 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 judgements 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 Standalone financial statements, the Board of Directors of the company are
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 the Management either intends to liquidate the Company or to cease operations, or has
no realistic alternative but to do so.
The Board of Directors of the Company is responsible for overseeing the Company’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
My objective is 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 my 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, I exercise professional judgement and maintain
professional scepticism throughout the audit. I 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 my 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
Companies Act, 2013, I am also responsible for expressing my 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 I conclude that a material uncertainty exists, I am
required to draw attention in my auditor’s report to the related disclosures in the Standalone
financial statements or, if such disclosures are inadequate, to modify my opinion. My
conclusions are based on the audit evidence obtained up to the date of my 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 financial statements, including
the disclosures, and whether the Standalone financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
I 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 I identify during my audit.
I also provide those charged with governance with a statement that I 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 my independence, and where
applicable, related safeguards.
From the matters communicated with those charged with governance, i 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. I describe these matters in my auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, I determine that a matter should not be communicated in my 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 subsection (ii) of section 143 of the Companies
Act, 2013, I 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 197(16) of the Act, as amended, in my opinion and to the best of my
information and according to the explanations given to me, the remuneration paid by the
company to its directors during the year is in accordance with the provisions of the Section
197 of the Act.
3. As required by Section 143(3) of the Act, I report that:
(a) I have sought and obtained all the information and explanations which to the best of
my knowledge and belief were necessary for the purposes of my audit of the aforesaid
Standalone financial statements.
(b) In my opinion, proper books of account as required by law relating to preparation of
the aforesaid Standalone financial statement have been kept by the Company so far
as it appears from my examination of those books.
(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss, and
the Standalone Cash Flow Statement dealt with by this Report are in agreement with
the relevant books of account maintained for the purpose of preparation of Standalone
Financial Statements.
(d) In my opinion, the aforesaid Standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule7 of the
Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors of the company
as on 31st March, 2025 taken on record by the Board of Directors of the Company,
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 my separate
Report in “Annexure B”.
(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, as amended, in my
opinion and to the best of my information and according to the explanations given to
me:
a. The Company does not have any pending litigations which would impact its
financial position.
b. The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
d. (i). The management has represented that, to the best of its knowledge and
belief, other than as disclosed in the notes to the accounts, 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, 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;
(ii) . The management has represented, that, to the best of its knowledge and
belief, other than as disclosed in the notes to the accounts, 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, 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
(iii) . Based on such audit procedures that I have considered reasonable and
appropriate in the circumstances, nothing has come to my notice that has
caused me to believe that the representations under sub-clause (i) and (ii)
contain any material misstatement.
e. The dividend declared or paid during the year by the company is in compliance with
section 123 of the Companies Act, 2013.
f. Based on our examination, which included test checks, the Company has used
accounting software for maintaining its books of account for the financial year ended
31st March, 2025 which has a 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 being tampered with.
As proviso to Rule 3(1) of the companies (Accounts) Rules,2014 is applicable from
1st April, 2023, reporting under rule 11(g) of the companies (Audit and Auditors)
Rule,2014 on preservation of audit trail as per the statutory requirements for record
retention is not applicable for the financial year ended 31st March 2025.
For V NARAYANASWAMI & Co
Chartered Accountants
Regn No. (FRN): 027417S
SD/-
V NARAYANASWAM I, M.A., FCA.,
Place :- Coimbatore Proprietor
Date:- 30.05.2025 Membership No:- 023661
UDIN:- 25023661BMIPHB8165
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