We have audited the accompanying financial statements
of Sai Silks (Kalamandir) Limited (hereinafter referred to
as "the Company"), which comprise the Balance Sheet
as at March 31, 2025, the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement
of Changes in Equity and the Cash flow statement for the
year then ended, and notes to the financial statements,
including 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 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 March
31, 2025, and its profit, other comprehensive income,
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.
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.
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Key Audit Matter
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How our audit addressed the key
audit matter
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1
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Inventories valuation
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Our procedures included,
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and existence:
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but was not limited to the
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(Refer Note 2(o) and
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following:
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8 to the financial
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• Obtained a detailed
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statements)
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understanding and evaluated
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The Company has
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the design and implementation
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Inventories of Rs.
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of controls that the Company
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777.82 Crores as at
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has established in relation
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March 31, 2025 as
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to inventory valuation and
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detailed in Notes 8 to
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existence.
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the financial statements.
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• Observed the physical
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Inventories valuation
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verification of inventories
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and existence has
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count at the financial year end
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been determined to
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and assessed the adequacy of
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be a key audit matter
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controls over the existence of
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as inventories may be
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inventories.
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held for long periods of
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• Obtained assurance over
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time before being sold
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the appropriateness of
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making it vulnerable
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management's assumptions
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to obsolescence.
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applied in calculating the gross
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This could result in an
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profit margin and discounts to
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overstatement of the
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be deducted from sales price
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value of the inventories
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to arrive at cost of goods.
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if the cost is higher
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• Evaluated management
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than the net realisable
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judgment with regards to the
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value. Furthermore,
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application of provisions to the
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the assessment and
application of inventories
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inventories.
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provisions are subject to
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Our Conclusion:
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significant management
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Based on the above procedures,
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judgment.
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we did not identify any
significant deviation to
the assessment made by
management in respect of
inventories valuation and
existence.
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Emphasis of Matter
We draw your attention to the followings forming part of
the financial statements without modifying our opinion in
respect of:
i. Note No: 37(a)(5), Search and seizure of operations
in the premises was conducted in the month of May
2023, by income tax department under section 132
of Income Tax Act,1961. Information and documents
submitted to income tax department as per notices
served from time to time.
Consequent to Scrutiny proceedings, the Income
Tax Department has determined the total liability for
an amount of Rs. 27.07 Crores (which includes an
interest of Rs. 8.35 Cr). Regarding this the company
has made a provision of Rs. 6.42 Crores during the
FY 2023-24 itself. Therefore, the Company has
made a provision for the balance amount during the
FY 2024-25. The same were paid in the month of
April,2025 and thereby the liability on the company
upon search proceedings were concluded.
ii. Note no. 38,39 of Notes forming part of accounts for
the period ended 31st March 2025 which describes
balance of trade receivables and trade payables
are subject to confirmation/reconciliation and
consequential adjustment, if any.
Our opinion is not modified in respect of
these matters.
Information Other than the Financial Statements
and Auditor's Report thereon
The Company's Management and Board of Directors
are responsible for 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 Report,
and Shareholder Information, but does not include the
financial statements and our auditor's report thereon. The
other information as identified above is expected to be
made available to us after the date of this Auditor's Report.
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
identified above when it becomes available 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.
When we read those documents including Annexures,
if any thereon, if we conclude that there is a material
misstatement therein, we shall communicate the matter
to those charged with the governance.
Responsibilities of Management and those
charged with governance for the Financial
Statements:
The Company's Management and Board of Directors
are 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 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 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 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 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 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 SA's, we exercise
professional judgement 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 financial
controls relevant to the audit in order to design
audit procedures that are appropriate in the
internal financial control with reference to the
financial statements.
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 according to the information
and explanations given to us, the remuneration
paid by the Company to its directors during the
current 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
11 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:
a. The Company has disclosed the impact of
pending litigations on its financial position
in its Financial Statements - Refer Note 37
to the financial statements
b. The Company did not have any long-term
contracts including derivative contracts
for which there were any material
foreseeable losses.
c. There were no amounts which were
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, 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
persons or entities, 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 ("Ultimate
Beneficiaries") by or on behalf of
the Company or
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 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 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 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 any 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. As required by Section 143 (3) of the Act, 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 it appears from our examination of
those books.
c) The Balance Sheet, the Statement of Profit
and Loss (including other comprehensive
income), Statement of changes in equity and
the Statement of Cash Flow dealt with by
this Report are in agreement with the books
of account.
d) In our opinion, the aforesaid financial statements
comply with the Indian Accounting Standards
(Ind AS) specified under Section 133 of the Act,
read with the relevant rules issued thereunder.
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
with reference to financial Statements 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
• Provide any guarantee, security
or the like to or on behalf of the
Ultimate Beneficiaries.
ii. The management has represented,
that, to the best of its knowledge
and belief, no funds have been
received by the Company from any
persons or entities, 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 ("Ultimate
Beneficiaries") by or on behalf of
the Funding Party or
• Provide any guarantee, security
or the like form or on behalf of the
Ultimate Beneficiaries; and
iii. Based on such audit procedures
as 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 (d)
(i) and (d)(ii) contain any material mis¬
statement.
e. 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 feature being tampered with
and the audit trail has been preserved
by the company as per the statutory
requirements for record retention.
f. The final dividend proposed during the
previous year, declared and paid by the
company during the year is in accordance
with section 123 of the Act, as applicable
2. As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the Central Government
of India 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, to the extent applicable.
For Sagar & Associates
Chartered Accountants
Firm's Registration No: 003510S
Sd/-
CA. D. Manohar
Partner
Membership No.029644
UDIN: 25029644BMIBVR5942
Place: Hyderabad
Date: 16.05.2025
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