| Textual Information(1) |
Inventory The Groups inventories which are held entirely by the Parent aggregate Rs. 4320.29 lakh as at June 30, 2026 Rs. 4,333.79 lakh as at March 31 2026. As explained in our review report on the standalone financial results of the Parent for the quarter ended June 30 2026 we have not been provided with documented physical verification condition assessment or valuation working papers supporting the quantity condition and valuation of these inventories. Consequently we are unable to determine whether any adjustment to inventories cost of materials consumed and the loss for the quarter is necessary to the consolidated financial results. |
| Textual Information(2) |
Not ascertainable |
| Textual Information(3) |
Not ascertainable |
| Textual Information(4) |
The Management has noted the observation. The inventory has been valued in accordance with the applicable accounting standards and the Companys accounting policies. The Management is compiling the physical verification condition assessment and valuation supporting documents and shall provide the same to the Auditors. Based on the Managements assessment no material adjustment is presently considered necessary. |
| Textual Information(5) |
The Managements contention that mutilated stock of approximately 30000 kgs has been valued at a 37percentage discount to cost resulting in no financial impact is not satisfactory weighment quality inspection records basis of arriving at the 37percentage discount or working reconciling such adjustment with the inventory records and valuation as at June 30 2026. In the absence of proper inventory records and any documentary evidence substantiating the quantity condition and basis of valuation the Auditors are unable to place reliance on this unsubstantiated assertion. The matter continues to remain unresolved and the qualification as stated in the Audit Report on the Standalone Financial Statements continues to subsist. not satisfactory of deriving 37percentage |
| Textual Information(6) |
Advance to Laxmi Spintex Private Limited The Parents standalone books reflect a balance of approximately Rs. 731.40 lakh advanced to its wholly owned subsidiary Laxmi Spintex Private Limited which based on our analysis of the movement between the standalone and consolidated Other Current Assets a difference of approximately Rs. 732 lakh at each of March 31 2026 and June 30 2026 entirely within the Advance to Suppliers and Service Providers linel appears to have been eliminated as an intra group balance in preparing the Statement. We have not been provided with the underlying consolidation and elimination working papers the corresponding ledger payable balance in the books of Laxmi Spintex Private Limited or evidence of the Board/committee approvals and compliance with the applicable provisions of the Companies Act 2013 including Sections 185 186 and 188 as applicable governing this advance. In the absence of such evidence. we are unable to confirm that the elimination is complete and correctly measured and we are unable to evaluate the internal control and regulatory compliance implications of this intra group funding for the Group. Consequently we are unable to determine whether any adjustment or additional disclosure is required in this regard. |
| Textual Information(7) |
Not ascertainable |
| Textual Information(8) |
Not ascertainable |
| Textual Information(9) |
The Management has noted the observation. The amount represents an intra group balance with the wholly owned subsidiary and has been appropriately eliminated while preparing the Consolidated Financial Statements. The Management is reconciling the respective ledgers and compiling the relevant consolidation workings, approvals and supporting documents. Necessary adjustmentdisclosure if any shall be made upon completion of the review. |
| Textual Information(10) |
The Managements response confirms that no prior board approval was obtained at the time the advance was extended to Laxmi Spintex Private Limited which is a noncompliance with the applicable provisions of the Companies Act 2013 including Section 186 and Rules thereunder as they stood at the relevant time. The subsequent squaring off of the balance even if factually correct does not retrospectively cure the noncompliance that existed during the year nor does it establish the terms purpose rate of interest and regulatory compliance applicable to the advance when it was outstanding. No loan advance agreement board minutes ledger extract or confirmation from the subsidiary evidencing the grant and subsequent square off of the advance was provided to the Auditors. A proposal to ratify the matter at a future meeting is a remedial step for the future and does not address the compliance status as at the balance sheet date. Accordingly the qualification continues to subsist. |
| Textual Information(11) |
Advance to a creditor Other current assets in the Statement include advances to suppliers and service providers of Rs. 1,295.70 lakh as at June 30 2026 Rs. 1170.97 lakh as at March 31 2026 stated net of the intra-group elimination referred to in paragraph 2 above This balance is stated by the Parent to include a significant advance to a creditor in respect of which indicators of financial stress at the counterparty and uncertainty over recoverability and end use were reported by the predecessor auditor in their report on the Parents standalone financial statements for the year ended March 31 2026. We have not been provided with a party wise ageing and recoverability assessment identifying this advance separately nor with an evaluation of expected credit loss thereon under Ind AS 109. Consequently we are unable to determine whether any adjustment to this balance and to the results for the quarter is necessary. |
| Textual Information(12) |
Not ascertainable |
| Textual Information(13) |
Not ascertainable |
| Textual Information(14) |
The Management has noted the observation and is undertaking a party wise reconciliation ageing and recoverability assessment of advances to suppliers and service providers. The relevant supporting documents and assessment shall be provided to the Auditors. The Management shall recognise any impairmentadjustment if required based on the outcome of the assessment. |
| Textual Information(15) |
Advance to creditor Any assessment of impairment expected credit loss under Ind AS 109 in respect of this advance nor any evidence regarding the financial position of the creditor or entities connected with it was made available to the Auditors during the audit. The Managements assertion that recovery is in process and that confirmation is already on record. In the absence of adequate evidence the Auditors are unable to determine the recoverability and carrying value of the advance and the qualification continues to subsist. |
| Textual Information(16) |
Land within Group Property Plant and Equipment During the financial year 2024 25 the Parent reduced the gross carrying value of freehold land in its standalone books by Rs. 217.55 lakh consequent to a stated sale to its wholly owned subsidiary Laxmi Spintex Private Limited at fair value the legal formalities for registration of the sale deed remain incomplete as at June 30 2026. Property plant and equipment in the Statement exceeds the Parents standalone Property plant and equipment by a constant Rs. 744.25 lakh at each of March 31 2026 and June 30 2026 representing the fixed assets of the two subsidiaries in aggregate. We have not been provided with a break up of this amount between the two subsidiaries nor with the consolidation working papers evidencing a elimination of any unrealised intra group profit arising on the land transfer and b that the land continues to be reflected in the Statement at the appropriate cost to the Group. We have also not been provided with evidence regarding the current legal status of title to the land. Consequently we are unable to determine whether Property plant and equipment in the Statement appropriately reflects this land as at June 30 2026 |
| Textual Information(17) |
Not ascertainable |
| Textual Information(18) |
Not ascertainable |
| Textual Information(19) |
The Management has noted the observation. The land transferred to the wholly owned subsidiary continues to form part of the Groups assets. The Management is compiling the subsidiary wise fixed asset details consolidation workings and documents relating to the land transfer and registration. Any adjustment or disclosure if required shall be made upon completion of the review. |
| Textual Information(20) |
Sale of land to subsidiary Mere handing over of physical possession in the absence of a registered sale deed and consequent transfer of legal title does not by itself constitute completion of a sale of immovable property or satisfy the recognition criteria for transfer of control under the applicable accounting framework. However we observed that as of 30 June 2026 the legal formalities for the registration of the sale deed have not been completed. |