We have audited the accompanying financial statements of E-LAND APPAREL LIMITED ("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 Cash Flows and the Statement of Changes in Equity for the year
then ended, and notes to the financial statements, including a summary of the material accounting policies
and other explanatory information.
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, as amended ('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, 2025, its profit including other
comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SA's)
specified under section 143 (10) of the Companies Act, 2013. 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 together with the ethical requirements that are relevant to our audit of
the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the 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 for the financial year ended March 31, 2025. 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. For each matter below, our description of how our
audit addressed the matter is provided in that context.
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Key Audit Matters
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How our audit addressed the key audit matter
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1.
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Revenue Recognition
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Our Audit procedure included the following:
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Refer note no. 2.2(i) of financial statements
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1.
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Assessed the appropriateness and consistency of
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with respect to the accounting policies
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the Company's revenue recognition
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followed by the Company for recognizing
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accounting policies as per Ind AS 115 "Revenue
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revenue.
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from Contracts with Customers" ("Ind AS
115").
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The Company derives its revenue from
delivery of garments and its related
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2.
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Obtained an understanding and assessed the
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products to its customer from India and
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design, implementation, and operating
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outside India, in accordance with
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effectiveness of controls over recognition and
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commercial terms agreed. The revenue is
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measurement of revenue in accordance with
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recognised at a point in time when control
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customer contracts, including timing of
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of the goods has transferred to the
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revenue recognition.
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customer
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3.
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Performed substantive testing by selecting
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Determination of point in time includes
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samples of revenue transactions recorded
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assessment of timing of transfer of
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during the year and verifying with the
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significant risk and rewards of ownership,
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underlying documents like sales
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establishing the present right to receive
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invoices/contracts, Purchase Orders, E-way
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payment for the products, delivery
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Bill, Bill of lading for export sales and delivery
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specifications including incoterms, timing
of transfer of legal title of the asset and
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challan for domestic sales.
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determination of the point of acceptance of
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4.
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Performed verification of the sales using
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goods by customer.
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documents, which include purchase orders
from customers, invoice and proof of
deliveries (bill of lading for export sales and
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Revenue is identified as an area of
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delivery challan for domestic sales).
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significant risk and at the year-end
management has to exercise significant
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5.
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Performed the cut-off testing of the revenue
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judgement for recognition of revenue as per
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recorded in the appropriate period and traced
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Ind AS 115. Accordingly, Revenue
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the sales with Shipping bill, Bill of lading and
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Recognition is identified as a Key Audit
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other logistic documents to confirm the
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Matter.
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appropriateness of recognition of revenue for
that period in the books of accounts.
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6. Obtained management representation that
revenue has been recorded as per the
requirements of Ind AS 115.
7. Evaluated the appropriateness of the disclosures
made in the financial statements in relation to
revenue recognized as per relevant accounting
standards.
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2
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Use of Going Concern Assumption
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Our Audit procedure included the following:
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Refer note no.42 of financial statements
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1. Confirmed that the holding company has
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with respect to use of going concern
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historically provided financial support to the
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assumption.
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Company during periods of need.
2. Verified the support letter obtained by the
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The Company has a profit during the current
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Company from its holding company, which
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year and losses in earlier years. Its net worth
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indicates the holding company's commitment
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is eroded as at that March 31, 2025. These
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to take necessary actions to address any
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may create a doubt regarding the
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liquidity shortfalls that may arise, ensuring the
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Company's ability to continue as a going
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Company's ability to meet its financial
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concern. However, the financial
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obligations for a period of 12 months from the
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statements have been prepared on a going
concern basis in view of the financial
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balance sheet date.
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support from the holding company and the
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3. Obtained a written representation from
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management's plan to generate cash flows
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management confirming their assessment of
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through operations, which would enable
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the Company's ability to continue as a going
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the Company to meet its financial
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concern, supported by the holding company's
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obligations as and when they fall due. We
considered this to be a key audit matter
because management's assessment is
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commitment.
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largely dependent on the support obtained
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Based on the procedures performed, we
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from its Holding Company.
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determined that management's assessment of the
going concern basis of accounting is appropriate.
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Other Information
The Company's Management and Board of Directors are responsible for the preparation of the other
information. The other information comprises the information included in the Annual Report, but does not
include the financial statements and our auditor's report thereon. The Annual Report 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 the annual report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to those charged with governance and take necessary actions, as
applicable under the applicable laws and regulations.
Management's and Board of Director's Responsibility 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 accounting principles generally accepted in India, including
the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015. 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, Management and Board of Directors 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 Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is 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 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 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 financial controls 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
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 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 misstatement 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 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 A" a statement
on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
A. 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 relevant books of account.
d. In our opinion, the aforesaid financial statements comply with the Ind AS specified under
Section 133 of the Act.
e. On the basis of the written representations received from the directors as on March 31, 2025
taken on record by the Board of Directors, none of the directors is disqualified as on March
31, 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 our separate Report in
"Annexure B". Our report expresses an unmodified opinion on adequacy and operating
effectiveness of the Company's internal financial controls over financial reporting.
B. 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
financial statements as at 31st March 2025 - Refer Note 41 to the 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 has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company.
iv. (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
• 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 from 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 (i) and (ii) above contain any material misstatement.
v. There is no dividend declared or paid during the year by the Company.
vi. Based on our examination, which included test checks, the Company, has used accounting
software systems for maintaining of its books of account for the financial year ended March
31, 2025 which have a feature of recording audit trail (edit log) facility and same has operated
throughout the year for all relevant transactions recorded in the software systems. Further,
during the course of our audit, we did not come across any instances of audit trail feature
being tampered with, in respect of accounting software's for the period for which audit trail
feature was operating. Additionally, the audit trail has been preserved by the company as
per the statutory requirements for record retention.
C. With respect to the 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.
For Singhi & Co.
Chartered Accountants,
(Firm's Registration No. 302049E)
Chaitanya Komanduri K
Partner
(Membership No.228661)
UDIN: 25228661BMIVNP4384
Date: 29-05-2025
Place: Bangalore
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