To the Members,
EVERLON FINANCIALS LIMITED
(Formerely Known as Everlon Synthetics Limited)
Report on Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Everlon Synthetics Ltd.
("the Company"), which comprise the balance sheet as at 31st March
2023, and the statement of Profit and Loss, the statement of changes in equity and the
statement of cash flows for the year then ended, and notes to the standalone financial
statements, including a summary of significant 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 standalone 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 accounting principles generally accepted in India, of
the state of affairs of the Company as at March 31, 2023, and profit, 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 Auditors 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 Standalone 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 opinion.
Emphasis of Matter
Attention is invited to the fact that during the year the Company is registered as a
Non-Banking Finance Company with the Reserve Bank of India (RBI) vide registration
certificate No. N-13.02443 issued on 19th December, 2022. Due to closure of manufacturing
operations during the financial year 2021-2022 and commencement of the new business during
the financial year 2022-23 the stock of shares are valued, at fair market value as on 31st
March, 2023 in accordance with Ind AS 109, Financial Instruments. Had the method of
valuation not changed the profit for the year would have been lower by Rs. 64.19 lakhs and
the Inventories would have been lower by the same amount.
Our opinion is not modified in respect to the above Emphasis of Matter.
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 year. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion, and we do not provide a separate opinion on these matters.
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprise the information include in the annual report, but does not include
the standalone financial statements and our auditors report thereon.
Our opinion on the standalone financial statement does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of standalone financial statements, our responsibility is
to read the other information and,in doing so, consider whether the other information is
materially inconsistent with the standalone financial statements or our knowledge obtained
in the audit or otherwise appears to be materilally misstated. 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.
Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance, changes
in equity and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the accounting Standards 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 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 is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern basis and using going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so. That Board of Directors is also responsible for
overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are 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 auditors 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 judgement and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risk of material misstatement of the financial
statements whether due to fraud or error, design and perform audit procedure 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 material misstatement resulting from
fraud is higher than for one resulting, in error, as fraud may involve collusion forgery,
intentional omission misrepresentation, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design the procedure 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 estimate and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and based on the audit evidence obtained whether a material uncertainly
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the standalone financial statements or if, such disclosure are inadequate to modify our
opinion. Our conclusions are based on the audit evidence upto the date of our auditors
report. However future events or conditions may causes the Company to cease to continue as
going concern; and
• 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 achieve fair
presentation.
Materially is magnitude of misstatements in the financial statements that individually
or in aggregate makes it probable that the economic decision of reasonably knowledgeable
user of the financial statements may be influenced. We considered quantitative materiality
and qualitative factors in (i) planning the scope of our work and in evaluating the result
of work in (ii) to evaluate the effect of any identified misstatement in the financial
statements.
We communicate with this 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 the internal control that we identify during our audit.
We also provide those charged with governance with statements 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, and 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 standalone financial statements
of the current year and are therefore the key audit matters. We describe these matters in
our Auditors Report wherever applicable and unless law or regulations preclude 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 consequence of the
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 (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in its terms of sub-section (11) of section 143
of Act , we give in the Annexure "A" a statement on the matters specified in
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) 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, Statement of Profit and Loss including the Statement of Other
Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt
with by this Report are in agreement with the books of account.;
d) in our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with the Companies
(Indian Accounting Standards) Rules, 2015.
e) On the basis of the written representation received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 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"
g) With respect to the matters to be included in the Auditors 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 explanation
given to us, the remuneration paid/ payable by the Company to its directors during the
year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters included in the auditors report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rule 2014 as amended and to best of our
information and according to the explanation given to us.
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 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. As per the management representation we report,
a) no funds have been advanced or loaned or invested by the company to or in any other
person(s) or entities,including foreign entities ("Intermediaries"),with the
understanding that the intermediary shall whether directly or indirectly lend or invest in
other persons or entities identified in any manner by or on behalf of the company
(Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the
Ultimate beneficiaries.
b) no funds have been received by the company from any person(s) or entities, including
foreign entities ("Funding Parties"),with the understanding that the such
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 guarantee, security or the like on behalf of the Ultimate beneficiaries.
c) Based on the audit procedures performed, we report that nothing has come to our
notice that has caused us to believe that the representations given under sub-clause (i)
and (ii) of Rule 11( e ) by the management contain any material mis-statement.
i) Since the company has not declared or paid any dividend during the year, the
question of commenting on whether dividend declared or paid is in accordance with Section
123 of the Act does not arise.
For B.L.Dasharda & Associates
Chartered Accountants
Firm Registration No. :112615W
|
CA Sushant Mehta |
| Place : Mumbai |
Partner |
| Dated: 29th May, 2023 |
Membership No.112489 |
| UDIN: 23112489BGVKSR2853 |
|
Annexure "A" to the Independent Auditors Report
The Annexure ‘A referred to in paragraph 1 under "Report on Other Regulatory
Requirements" section of our report of even date
(i) In Respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars including
quantitative details, wherever applicable, and situation of Property, Plant and Equipment
and Intangible assets;
(b) As explained to us, a major portion of the Plant and Equipment and Intangible
Assets has been physically verified by the management during the year in a phased
periodical manner which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. As informed to us no material discrepancies were
noticed on such verification.
(c) The Company does not own any immovable property. Hence this clause of the Order is
not applicable to the Company
(d) The Company has not revalued any of its Plant and Equipment hence the provision of
Clause 3 (i) (d) of the Order is not applicable to the Company.
(e) No proceedings have been initiated or pending against the company for holding any
Benami property under the Benami Transactions (Prohibition) Act, 1988.
(ii) In Respect of its inventory:
As explained to us, inventories constitute Stock in trade of Shares. Thus The
provisions of clause 3(ii) of the Order is not applicable since the Company does not have
any inventory of goods.
During the year the Company has not been sanctioned working capital limit in excess of
five crore rupees, in aggregate, from banks or financial institutions on the basis of
security of current assets, hence the provision of Clause 3(ii) (b) of the Order is not
applicable to the Company.
(iii) a) According to the information and explanations given to us and based on the
audit procedures performed by us, the Company has not provided any guarantee or security
or made investments or granted any loans or advances in the nature of loans, secured or
unsecured to subsidiaries, joint venture and associates. The company has not made
investments in Companies, Firms, Limited Liability Partnerships and other parties.
According to the information and explanations given to us and based on the audit
procedures performed by us, the company has granted Unsecured loans ("Loans") to
one company and two employees. The aggregate amount of Loans given during the year is Rs
101.68 lakhs and balance outstanding at the Balance sheet date is Rs 101.68 lakhs.
b) According to the information and explanations given to us and based on the audit
procedures conducted by us, the terms and conditions of the Loans granted by the company
are prima- facie not prejudicial to the companys interest;
c) According to the information and explanations given to us and based on the audit
procedures conducted by us, the repayment of the principal amounts of Loans and receipt of
interest is regular during the year and the schedule of repayment of principal and
interest of all Loans granted by the company have been stipulated;
d) According to the information and explanations given to us and based on the audit
procedures conducted by us, there is no amount overdue in respect of any Loans granted by
the company;
e) According to the information and explanations given to us and based on the audit
procedures conducted by us, the total Loans renewed during the year amounted to Rs NIL.
f) According to the information and explanations given to us and based on the audit
procedures conducted by us, the company has not granted any Loans repayable on demand or
without specifying any terms or period of repayment.
(iv) In our opinion and according to the information and explanations given to us, the
Company has not granted any loans or provided any guarantees or security in respect of any
loan(s) to any party covered under Section 185 and 186 of the Act. In respect of
Investments made in Body Corporate by the Company, the provisions of Section 186 of the
Act, has been complied with.
(v) In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits within the meaning of Section 73, 74, 75 and 76 of
the Act and the Rules framed thereunder to the extent notified..
(vi) According to the information and explanations given to us, the Central Government
has not prescribed maintenance of cost records under sub-section (1) of 148 of the Act.
(vii) According to the information and explanation given to us, in respect of statutory
dues;
a. The Company is generally regular in depositing undisputed statutory dues including
provident fund employees state insurance, income-tax, sales tax, wealth tax, GST, custom
and excise duty, value added tax, cess and any other statutory dues with the appropriate
authorities wherever applicable.
b. There were no undisputed amounts payable in respect of provident fund, employees
state insurance, income tax, sales-tax, GST, custom and excise duty, value added tax, cess
and any other statutory dues in arrears as at March 31, 2023 for a period of more than six
months from the date they became payable.
(viii) According to the information and explanations given by the management and based
on the procedures carried out during the course of our audit, we have not come across any
transactions not recorded in the books of account, and which have been surrendered or
disclosed as Income in the tax assessments under the Income Tax Act, 1961
(ix) The Company has not taken any loans or borrowings from financial institutions,
banks and government or has not issued any debentures. Hence paragraphs (a), (b) ,(c), (d)
, (e) & (f) of Clause 3 (ix) of the Order are not applicable.
(x) The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) and has not availed any term loans during the year
under audit. Hence the provisions of clause 3 (x) of the Order is not applicable to the
Company.
(xi) (a) During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to information and explanations given to us, no material fraud by the company or
on the company has been noticed or reported during the course of our audit. Hence the
provisions of Clause 3 (xi) of the Order is not applicable to the Company.
(b) There has been no report filed under sub-Section (12) of Section 143 of the Act by
the auditors as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government.
(c) As represented to us by the management there were no whistle blower complaints
received during the year under audit.
(xii) In our opinion and according to information and explanations given to us, the
Company is not a Nidhi Company, hence the provisions of Clause 3 (xii) of the Order is not
applicable to the Company.
(xiii) In our opinion and according to information and explanations given to us,
transactions with related parties are in compliance with Section 177 and 188 of Act,
wherever applicable, and details of such transactions have been disclosed in the Financial
Statements as required by the applicable accounting standards.
(xiv) a) The company has an Internal audit system commensurate with the size and nature
of its business.
b) We have considered the Internal Auditor reports of the company issued till date for
the period under audit.
(xv) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not entered into any non-cash
transactions with directors or persons connected with him. Hence the provisions of Clause
3 (xv) the Order is not applicable to the Company.
(xvi) During the year the company has obtained the NBFC registration under section 45
IA of the Reserve Bank of India Act,1934 vide Registration Certificate no.- N-13.02443,
issued dated 19th December, 2022.
(xvii) The Company has not incurred any cash losses during the current financial year
and in the immediately preceding financial year and hence the provision of clause 3 (xvii)
is not applicable to the company.
(xviii) There has not been any resignation of the Statutory auditors during the year.
Hence the provision of Clause 3 (xviii) is not applicable to the company.
(xix) According to the information and explanations given to us on the basis of our
examination of the records of the company, no material uncertainty exists as on the date
of the audit report that Company is not capable of meeting its liabilities existing at the
date of balance sheet as and when they fall due within a period of one year from the
balance sheet date on the financial ratios, ageing, expected dates of realisation of
financial assets, payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans. We further state that our reporting is based on the facts up to date of audit
report and we neither give any guarantee nor any assurance that all liabilities falling
due within a period of one year from the balance sheet date, will get discharged by the
company as and when they fall due.
(xx) According to the information and explanations given to us and on the basis of our
examination of the records the Company was not required to spend any amount under
Corporate Social Responsibility (CSR) as prescribed under Section 135 of the Act;
For B.L.Dasharda & Associates
Chartered Accountants
Firm Registration No. :112615W
|
CA Sushant Mehta |
| Place : Mumbai |
Partner |
| Dated: 29th May, 2023 |
Membership No.112489 |
| UDIN: 23112489BGVKSR2853 |
|
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE
FINANCIAL STATEMENTS OF EVERLON FINANCIALS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Everlon
Synthetics Limited ("the Company") as of March 31, 2023 in conjunction with our
audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to Companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of
internal financial controls, both applicable to an audit of Internal Financial Controls
and, both issued by the Institute of Chartered Accountants of India. Those Standards and
the Guidance Note require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether adequate internal financial
controls over financial reporting was established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the Companys internal financial controls system over
financial reporting.
Meaning of Internal Financial Controls over Financing Reporting
A Companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements, for external purposes in accordance with generally
accepted accounting principles. A Companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (2) provide reasonable assurance that
transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the Company are
being made only in accordance with authorisations of management and directors of the
Company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the Companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financing Reporting
Because of the inherent limitations of internal financial controls over financing
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subjected to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by the Institute of Chartered
Accountants of India.
For B.L.Dasharda & Associates
Chartered Accountants
Firm Registration No. :112615W
| Place : Mumbai |
CA Sushant Mehta |
| Dated: 29th May, 2023 |
Partner |
| UDIN: 23112489BGVKSR2853 |
Membership No.112489 |
+91-9892691696
