To The Members of SHENTRACON CHEMICALS LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements ofSHENTRACON
CHEMICALS LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss (including other comprehensive income),
the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended
and 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 IndAS 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 including IndAS as amended, specified under Section 133 of the Act, of the state of
affairs of the Company as at 31 March 2023, and its loss ( including other comprehensive
income), its cash flows and the changes in equity for the year ended on that date.
Basis of Opinion
We conducted our audit of the standalone financial statements 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
Responsibility for the Audit of the Standalone 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 ethical requirements
that are relevant to our audit of the standalone 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 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 on the standalone 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 standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
1.Note No. 2.17 regarding presentation of the accounts on the basis applicable to
"Going Concern" although the Companys net worth has been fully eroded due to
accumulated losses, including the loss for the year, for the reason as stated in the note.
In the event, the Going Concern assumption is vitiated; the financial statements may
require necessary adjustment.
2. As indicated in the financial statements, the Company has accumulated losses and its
net worth has been fully eroded, the Company has incurred loss during the current year.
These conditions, along with other matters set forth in Notes to Financial Statements,
indicate the existence of a material uncertainty that may cast significant doubt about the
Companys ability to continue as a going concern. However, these Financial Statements of
the Company have been prepared on a going concern basis due to reasons stated in Note No.
2.17.
Information Other than the Financial Statements and Auditors Report Thereon
The companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Companys Annual Report, but does
not include the standalone financial statements and our auditors report thereon.
Our opinion on 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 standalone IndAS 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 during the course of our audit or otherwise appears to be
materially 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.
Managements responsibility for the Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone IndAS financial statements that give a true and fair view of the state of
affairs, profit /loss and other comprehensive income , changes in equity, and cash flows
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 the maintenance of adequate accounting records in
accordance with the provisions of the act for safeguarding the assets of the company and
for preventing and detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgment and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial control, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the standalone IndAS financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
The Companies net worth is negative. There are no borrowings from banks and financial
institutions. Further the company is in the process of identifying alternative business
plans. The above factors cast a significant uncertainty on the companys ability to
continue as a going concern.
Pending the resolution of the above uncertainties, the company has prepared the
aforesaid statements on a going concern basis.
Those charged with governance are also responsible for overseeing the Companys
financial reporting process.
Auditors Responsibility
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 standalone IndAS 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 misstatements of the standalone
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 control 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 with reference to the financial
statements 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 managements 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 standalone 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
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
financial statements, including the disclosures, and whether the standalone financial
statements 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.
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 period and are therefore the key audit matters. We describe these matters
in our auditors 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 (Auditors Report) Order, 2020, ("the Order")
issued by the Central Government of India in terms of sub-section (11) of Section 143 of
the Act, we give in the "Annexure I", a statement on the matters specified in
paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act, based on our audit, to the extent
applicable, 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 purpose
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 Other Comprehensive
Income, Cash Flow Statement and statement of changes in Equity dealt with by this
report are in agreement with the books of account;
d. Except for the possible effects of the matter described in the key audit
matter paragraph, in our opinion, the aforesaid standalone Ind AS financial
Statement comply with the Indian Accounting Standards referred to in section 133 of
the Companies Act, 2013.
e. The matters described in the key audit matter paragraph above, in our opinion, may
have an adverse effect on the functioning of the Company
f . on the basis of written representations received from the directors as on March 31,
2023, taken on record by the Board of Directors, none of the directors is disqualified as
on March 31, 2023 from being appointed as a director in terms of sub section (2) of
section 164 of the Companies Act, 2013.
g. with respect to the adequacy of the internal financial controls with reference to
financial statements of the company and the operating effectiveness of such controls, we
give our separate reports in "Annexure II".
h. With respect to the other 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 explanations given to us, the
remuneration paid/provided by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
i. with respect to the other matters included in the auditors report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to best
of our information and according to the explanation given to us:
1) The company has disclosed the impact of pending litigation, if any, on its financial
position as at 31st March, 2023 in its Standalone IndAS financial statement .
Refer Note 2.16 of other Notes to Accounts.
2) The company did not have any long term contract including derivative contracts for
which there were any material foreseeable losses.
3) There has been no delay in transferring amounts, required to be transferred, to the
investors education and protection fund by the company.
4)
a The management has represented that, to the best of its knowledge and belief , no
funds ( which are material either individually or in the aggregate) have been advanced or
loaned or invested ( either from borrowed funds or securities premium or any other sources
or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign
entities (the intermediaries), with the understanding, whether recorded in writing or
otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Company (the Ultimate Beneficiaries) or provide any guarantee, security or the like on
behalf the Ultimate Beneficiaries;
b The management has represented that, to the best of its knowledge and belief, no
funds ( which are material either individually or in the aggregate) have been received by
the Company from any person(s) or entity(ies), including foreign entities (the Funding
Parties), with the understanding, whether recorded in writing or otherwise, that the
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 any guarantee, security or the like on behalf of the Ultimate
Beneficiaries; and
c Based on such audit procedures performed as considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
management representations under sub- clauses (a) and (b) above contain any material
misstatement.
5) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail ( edit
log) facility is applicable to the Company w.e.f . April 1, 2023, and accordingly,
reporting under Rule 1 l(g) of Companies (Audit and Auditors) Rules, 2014 is not
applicable for the financial year ended March 31, 2023. For Chanani & Associates .
Chartered Accountants
Firms registration number: 325425E
CA Subhash Chandra Chanani Place: Howrah Partner Dated: 30th May 2023
Membership number: 063078 ICAI UDIN : 23063078BGZGXY1286
+91-9892691696
