Adline Chem Lab Ltd Auditor Reports

TO THE BOARD OF DIRECTORS OF

ADLINE CHEM LAB LIMITED

Auditors Report on quarterly Financial Results for the quarter ended 31^st March, 2024 and year to date results for the year ended 31^st March, 2024 pursuant to Regulation 33 of the SEBI(LODR) Regulation 2015.

Opinion

We have audited the accompanying standalone annual financial results of Adline Chem Lab Limited for quarter ended 31^st March, 2024 and the year-to-date results for the year ended 31^st March, 2024, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations"). In our opinion and to the best of our information and according to the explanations given to us these standalone annual financial results: i. are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and ii. give a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards ("Ind AS") and other accounting principles generally accepted in India of the net loss and other comprehensive income and other financial information of the Company for the quarter and year ended March 31, 2024.

Basis for Opinion

We conducted our audit of the Statement in accordance with the Standards on Auditing ("SA"s) specified under Section 143(10) of the Companies Act, 2013 ("the Act"). Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Results 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 ethical requirements that are relevant to our audit of the Standalone Financial Results for the quarter and year ended March 31, 2024 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 ICAIs Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

Managements Responsibilities for the Standalone Financial Results

These standalone annual financial results have been prepared on the basis of the standalone annual financial statements. The Companys Board of Directors are responsible for the preparation of these financial results that give a true and fair view of the net profit/ loss and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in applicable Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. 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 standalone financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone annual financial results, the Board of Directors are responsible for assessing the Companys 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 are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone annual financial results 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 standalone annual financial results.

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 standalone annual financial results, 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act, 2013, 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 Board of Directors.

Conclude on the appropriateness of the Board of Directors 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 Companys ability to continue as a 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 financial results 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 auditors 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 standalone annual financial results, including the disclosures, and whether the financial results represent the underlying transactions and events in a manner that achieves fair presentation. 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.

Other matter

The standalone annual financial results include the results for the quarter ended 31^st March, 2024 and the corresponding quarter ended in the previous year being the balancing figure between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the relevant financial year which were subject to limited review by us. We invite attention to notes to the statement of standalone unaudited financial results for the quarter ended 31^st March 2024 and the year ended 31^st March 2024 Prepared by the Board of Directors of the company and approved by them at their meeting held on 23^RD May 2024.

For DEEPAK SONI & ASSOCIATES

Chartered Accountants

Firms Registration No._102250W

(Name of the proprietor -DEEPAK SONI)

Proprietor

(Membership Number 31138)

UDIN:24031138BKFSCW1167

Place : Ahmedabad

Date: 23 MAY, 2024

ANNEXURE-A

Disclosure of Particulars with respect to Conservation of Energy

B. Technology Absorption : Not applicable.

C. ForeignExchange Earning/ Outgo : During the year under review, the Foreign Exchange expenditures and Outgoings has been to the extent of Rs.NIL (Previous year Rs. NIL Lakhs). The Foreign exchange earnings and are Rs. NIL (F.OB.) (Previous yearRs.21.25 Lakhs)

14. CODE OF CONDUCT:

The Board of Directors has laid down a Code of Conduct applicable to the Board of Directors and Senior Management. All the Board Members and Senior Management personnel have affirmed compliance with the code of conduct.

15. ACKNOWLEDGMENT:

Your Directors express their sincere thanks and appreciation to Promoters, Shareholders, Suppliers and Customers for their constant support and co-operation. Your Directors also place on record their grateful appreciation and co-operation received from the Employees of the Company and the Manufacturers/Suppliers of Finished Goods .

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment:

	Secured Loans excluding deposits	Unsecured Loans	Deposits	Total Indebtedness
Indebtedness as on 01-04-2022
i) Principal Amount	4,27,580	-	2,89,85,715	2,94,13,295
ii) Interest due but not paid	-	-	-	-
iii) Interest accrued but not due	-	-	-	-
Total (i+ii+iii)	4,27,580	-	2,89,85,715	2,94,13,295
Change in Indebtedness during 2022-23	-	-	-	-
* Addition	4,11,42,539	-	26,95,469	4,38,38,008
* Reduction	3,85,77,858	-	1,09,33,759	4,95,11,617
Net Change	25,64,681	-	(82,38,290)	(56,73,609)
Indebtedness as on 31-03-2023	29,92,261	-	2,07,47,425	2,37,39,686
i) Principal Amount	29,92,261	-	2,07,47,425	2,37,39,686
ii) Interest due but not paid	-	-	-	-
iii) Interest accrued but not due	-	-	-	-
Total (i+ii+iii)	29,92,261	-	2,07,47,425	2,37,39,686

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

Remuneration to Managing Director, Whole-Time Directors and/or Manager:

Sr. No. Particulars of Remuneration	Name of MD/ WTD/ Manger
Particulars of Remuneration	Mr. Kamlesh J. Laskari	Mr. SohanK.. Laskari	Mr. Rohan K. Laskari
1. Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961	14,98,000	5,28,750	7,93,750
(b) Value of perquisites u/s 17(2)Income-tax Act, 1961	-	-	-
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961	-	-	-
2. Stock Option	NIL	NIL	NIL
3. Sweat Equity	NIL	NIL	NIL
4. Commission	NIL	NIL	NIL
- as % of Profit
- others, specify…
5. Others, Please specify	-	-	-
Total (A)	14,98,000	5,28,750	7,93,750
Ceiling as per the Companies Act	Rs.84 lacs	Rs. 42 lacs	Rs. 42 lacs

B. Remuneration to other Directors:

Particulars of Remuneration	Name of Directors		Total Amount
	Ranak K. Laskari	Mr. Mahendra P. Shah	Mr. Devarshi D. Patel
1. Fee for attending Board/	0	0	0	0
Committee meetings
2. Commission	NIL
3. Others, please specify
Total Managerial Remuneration	0	0	0	0

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

Sr. No. Particulars of Remuneration	Key Managerial Personnel
	Ms. Bhavasthi Mehta, Company Secretary@
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the income tax Act, 1961	Rs. 2,40,000/-
(b) Value of perquisites u/s 17(2) of income tax Act, 1961
(c) Profit in lieu of salary under section 17(3) Income tax Act, 1961
2 Stock Option
3 Sweat Equity
4 Commission
5 Others, Please specify
Total	Rs. 2,40,000/-

VII. PENALTIES/ PUNISHMENT/ COMPOUNDING OF OFFENCES: NIL

No disclosure is required as there are no such Penalties/ Punishment imposed on the Company and its Directors/KMP and no Compounding of Offences done by the Company and its Directors/ KMP.

ADLINE CHEM LAB LIMITED