To The Members of
Sonal Adhesives Limited
Report on the Audit of the Standalone IND AS Financial Statements
Opinion
I have audited the accompanying standalone IND AS financial statements of Sonal
Adhesives Limited, (‘the Company), which comprise the Balance Sheet as at 31 Mar
2023, the Statement of Profit and Loss (including Other Comprehensive Income), Cash Flow
Statement and Statement of Changes in Equity for the year then ended and a summary of
significant accounting policies and other explanatory information.
In my opinion and to the best of my information and according to the explanations given
to me, the aforesaid standalone IND AS 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 inconformity with the accounting principles generally accepted in India including
Indian Accounting Standards(Ind AS) specified under Section 133 of the Act, of the state
of affairs (financial position) of the Company as at 31 March 2023, and its profit
(financial performance including other comprehensive income), its cash flows and the
changes inequity for the year ended on that date.
Basis of Opinion
I conducted my audit in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013. My responsibilities under those Standards are
further described in the Auditors Responsibilities for the Audit of the Financial
Statements section of my report. I am 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 my audit of the financial statements under the
provisions of the Companies Act, 2013 and the Rules thereunder, and I have fulfilled my
other ethical responsibilities in accordance with these requirements and the Code of
Ethics. I believe that the audit evidence I have obtained is sufficient and appropriate to
provide a basis for my opinion.
Key Audit Matters
Key audit matters are those matters that, in my professional judgment, were of most
significance in my audit of the financial statements of the current period. These matters
were addressed in the context of my audit of the financial statements as a whole, and in
forming my opinion thereon, and I do not provide a separate opinion on these matters.
I have determined the matters described below to be the key audit matters to be
communicated in my report.
i. Note No. 28 to the standalone IND AS Financial Statements which inter-alia describes
the uncertainty related to the outcome of the cases/notices filed/given against the
Company.
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 Annual Report, but does not include
the financial statements and my auditors report thereon.
My opinion on the financial statements does not cover the other information and I do
not express any form of assurance conclusion thereon.
In connection with my audit of the financial statements, my responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or my knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work I have
performed, I conclude that there is no material misstatement of this other information, I
am required to report that fact. I have nothing to report in this regard.
Responsibility of Management for the Standalone 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
and presentation of these standalone IND AS 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 Accounting Standards (Ind AS)
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes 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 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 IND AS 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 and using the 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.
Those Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibility
My objectives is 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 auditors report that includes my opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with Standards
on Auditing 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 Standards on Auditing, I exercise professional
judgment and maintain professional skepticism throughout the audit. I 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 my 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 the Act, I am also responsible for explaining my 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 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 I conclude that a material uncertainty exists,
I am required to draw attention in my auditors report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify my opinion. My
conclusions are based on the audit evidence obtained up to the date of my 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 financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
I 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 I identify during my audit.
I also provide those charged with governance with a statement that I 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 my independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, I 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. I describe these matters in my
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, I determine that a matter should not be
communicated in my 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
i. As required by The Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of subsection(11) of section 143 of the
Act, I give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4
of the said order.
ii. As required by section 143(3) of the Companies Act 2013, based on my audit I report
to the extent applicable that:
a. As described in the Basis of Qualification of Opinion Paragraph, I was unable to
obtain all the information and explanations which to the best of my knowledge and belief
were necessary for the purpose of my audit;
b. In my opinion proper books of account as required by law have been kept by the
Company so far as appears from my examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, the Statement of Cash Flow and Statement of Changes in Equity dealt with by this
Report are in agreement with the relevant books of account;
d. Except for the effects of the matter described in the Basis for Qualified /
Disclaimer Opinion / Key Audit Matters/ Other Matter paragraphs in my opinion, the
aforesaid standalone Ind AS financial statements comply with the Accounting Standards
specified under section 133 of the Act;
e. On the basis of written representations received from the directors as on 31st
March, 2023, and 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
separate report in "Annexure B", and
g. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in my opinion
and to the best of my information and according to the explanations given to me:
i. The Company has disclosed the impact of pending litigations on its financial
position in its standalone IND AS financial statements- Refer Note 28 to the standalone
IND AS financial statements;
ii. The Company does not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses,
iii. The amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company have been transferred.
|
M. C. Asawa & Co. |
|
Chartered Accountants |
|
FRN : 008041C |
|
Mukund Sarda |
| Place: Khopoli |
Proprietor |
| Date: 29th May, 2023 |
M. No. 163405 |
ANNEXURE-A TO THE INDEPENDENT AUDITORS REPORT
The annexure referred to my Independent Auditors Report to the members of the company
on the standalone IND
AS financial statements for the year ended 31st March 2023, I report that:
1. Details of tangible and intangible assets
1. The company has maintained proper records showing full particulars, including
quantitative details and situation of tangible and intangible assets.
2. Fixed assets have been physically verified by the management at reasonable
intervals. I have been informed that no material discrepancies were noticed on such
verification.
3. Whether the material discrepancies, if any, noticed on physical verification have
been accounted for in the books of accounts.
4. According to the information and explanations given to me and on the basis of my
examination of the records of the Company, all the title deeds of immovable properties are
held in the name of the Company, except properties which are leased by the company with
duly executed lease agreements in the companys favour.
5. No revaluation has been done by the company of its property, plant and equipment
(including the right of use assets) or intangible assets or both during the year.
6. No proceedings have been initiated or are pending against the company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.
2. Details of inventory and working capital
1. As explained to me, the inventory of the company has been physically verified by the
management during the year at reasonable intervals and no material discrepancies were
noticed on physical verification.
2. The company, during any point of time of the year has not been sanctioned working
capital limits in excess of five crore rupees, in aggregate, from banks or financial
institutions on the basis of security of current assets.
3. As company has no sanctioned working capital, there are no quarterly returns or
statements filed by the company with financial institutions or banks. Thus, this clause is
not applicable.
3. Details of investments, any guarantee or security or advances or loans given
1. As per the information and explanations given to me and the records produced before
me for my verification, the Company has not granted unsecured loan to companies, firms,
LLPs or other parties covered in the register maintained under section 189 of the
Companies Act, 2013. Accordingly, clause 3 (iii) (a) & (b) of the Order is not
applicable to the Company.
4. Compliance in respect of a loan to directors
1. The company has not given any loans to directors or any other person in whom the
director is interested, or made any investments.
5. Compliance in respect of deposits accepted
1. The company has not accepted deposits or deemed deposits, compliance with the
provisions prescribed for accepting deposits under section 73 to 76 of the Companies Act,
2013 or or any other relevant provisions of the Companies Act, 2013 and the rules framed
there under.
6. Maintenance of costing records
1. The Company maintains cost records specified by the Central Government under
sub-section (1) of section 148 of the Companies Act, 2013.
7. Deposit of statutory liabilities
1. The Company has generally been regular in depositing undisputed statutory dues,
including Provident Fund, Employees State Insurance, Income-tax, Goods & Service Tax,
Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other
material statutory dues applicable to it to the appropriate authorities.
2. There were no undisputed amounts payables in respect of Provident Fund, Employees
State Insurance, Income-tax, Goods & Service Tax, Sales Tax, Service Tax, Customs
Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as
at 31 March, 2023 for a period of more than six months from the date they became payable.
3. The Company has no disputed statutory dues pending to be deposited as on 31st March
2023 in respect of provident fund, employees state insurance, income tax, good and service
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues applicable to it.
8. Unrecorded income
1. Any transactions which are not recorded in the accounts have not been disclosed or
surrendered before the tax authorities as income during the year.
9. Default in repayment of borrowings
1. The company has not made any default in the repayment of loans to banks, government,
debenture-holders, etc. then the amount and period of default.
2. The company has not been declared a wilful defaulter by any bank or financial
institution or any other lender.
3. Term loans have been used for the object for which they were obtained.
4. The company has not used funds raised for a short term basis for long term purposes.
5. The company has not raised any money from any person or entity for the account of or
to pay the obligations of its associates, subsidiaries or joint ventures.
6. The company has not raised any loans during the year by pledging securities held in
their subsidiaries, joint ventures or associate companies.
10. Funds raised and utilisation
1. The company has not raised any funds from a public offer (equity or debt capital)
during the year. Thus, this clause is not applicable.
11. Fraud and whistle-blower complaints
1. There has not been any fraud by the company or any fraud done on the company Thus,
this clause is not applicable.
12. Compliance by a Nidhi
1. This clause is not applicable since the company is not a NIDHI company.
13. Compliance on transactions with related parties
1. T ransactions with related parties are in accordance with the provisions of section
177 & 188.
2. Details of the same have been disclosed in the standalone IND AS financial
statements.
14. Internal audit system
1. The company have an internal audit system in accordance with its size and business
activities.
2. The reports of the internal auditors have been considered by the statutory auditor.
15. Non-cash transactions
1. The company has not undertaken non-cash transactions with their directors or other
persons connected to the directors, the restrictions imposed are complied with.
16. Registration under Section 45-IA of RBI Act, 1934
1. The company is not required get registration u/s 45-IA of RBI Act, 1934. Thus, this
clause is not applicable.
17. Cash losses
1. The company has not incurred any cash losses in the financial year.
18. Resignation of statutory auditors
1. During the year, there has not been any resignation of statutory auditors.
19. Material uncertainty
1. There is no existence of any material uncertainty on the date of the audit report on
an evaluation of: - The ageing report, financial ratios and expected dates of realisation
of financial assets and payment of financial liabilities, any other information
accompanying the financial statements, the auditors knowledge of the Board of Directors
and management plans. - In our opinion the company can meet its the liabilities which
exist as at the balance sheet date when such liabilities are due in the future.
20. Transfer to fund specified under Schedule VII of Companies Act, 2013
1. There is no unspent amount as on close of the financial year as required to be
transferred to a fund specified in Schedule VII to the Act.
21. Qualifications or adverse auditor remarks in other group companies
1. There have not been any qualifications or adverse remarks in the audit reports
issued by the respective auditors in case of companies included in the consolidated
financial statements, to indicate the details of the companies and the paragraph numbers
of the respective CARO reports containing the qualifications or adverse remarks.
|
M. C. Asawa & Co. |
|
Chartered Accountants |
|
FRN : 008041C |
|
Mukund Sarda |
| Place: Khopoli |
Proprietor |
| Date: 29th May, 2023 |
M. No. 163405 |
Annexure - B to the Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
I have audited the internal financial controls over financial reporting of Sonal
Adhesives Limited ("the Company") as of 31 March 2023 in conjunction with my
audit of the standalone 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 (‘ICAI). 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 Companies Act, 2013.
Auditors Responsibility
My responsibility is to express an opinion on the Companys internal financial controls
over financial reporting based on my audit. I conducted 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 Companies Act, 2013, 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 I 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.
My audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. My 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 judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate to
provide a basis for my audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial 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 Financial Reporting
Because of the inherent limitations of internal financial controls over financial
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 subject 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 my 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 31 March 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.
|
M. C. Asawa & Co. |
|
Chartered Accountants |
|
FRN : 008041C |
|
Mukund Sarda |
| Place: Khopoli |
Proprietor |
| Date: 29th May, 2023 |
M. No. 163405 |
+91-9892691696
