To
The Board of Directors,
SPP POLYMER LIMITED
Dear Sirs,
We have examined the attached Restated Financial Information of SPP Polymer Limited, comprising the Restated Assets and Liabilities as at June 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022 the Restated Statements of Profit and Loss (including other comprehensive income) for period ended on June 30, 2024 and year ended March 31, 2024, March 31, 2023 and March 31, 2022, the Restated Statement of changes in Equity, the Restated Cash Flow Statement for the period ended June 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022 the Summary statement of Significant Accounting Policies and other explanatory information (Collectively the Restated Financial Information as approved by the Board of Directors of the Company for the purpose of inclusion in the Draft Red Herring Prospectus / Red Herring Prospectus / Prospectus, prepared by the company in connection with its proposed Initial Public Offer of equity shares (IPO) prepared in terms of the requirements of Section 26 of Part I of Chapter III of the Companies Act, 2013 ("the Act") read with Rules 4 to 6 of Companies (Prospectus and Allotment of Securities) Rules, 2014 ("the Rules");
The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended from time to time in pursuance of provisions of Securities and Exchange Board of India Act, 1992 ("ICDR Regulations"); and
The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI), as amended from time to time (the Guidance Note)
The Companys Board of Directors are responsible for the preparation of Restated Financial Information for the purpose of inclusion in the DRHP / RHP / Prospectus to be filled with Securities and Exchange Board of India, NSE and Registrar of Companies, Delhi in connection with the proposed IPO. The Restated Financial Information have been prepared by the management of the company on the basis of preparation stated in notes to the Restated Financial Information. Managements responsibility includes designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Restated Financial Information. Management also responsible for identifying and ensuring that the Company complies with the Companies Act, ICDR Regulations and the Guidance Note.
We have examined such Restated Financial Information taking into consideration:
The terms of reference and terms of our engagement agreed upon with the company in accordance with our engagement letter in connection with the proposed IPO of equity shares of the Company;
The Guidance Note. The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI; and
The requirements of Section 26 of the Act and the ICDR Regulations. Our work was performed solely to assist you in meeting your responsibilities in relation to your compliance with the Act, the ICDR Regulations and the Guidance Note in connection with the IPO.
These Restated Financial Information have been compiled by the management from the Audited Financial Statements of the company for the financial years / period ended on June 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022 which have been approved by Board of directors.
In accordance with the requirements of Act, SEBI ICDR Regulations, Guidance Note on the reports in Company Prospectus (Revised) issued by ICAI and the terms of our Engagement Letter, we further report that:
The "Restated Statement of Assets and Liabilities" as set out in Annexure 1 to this report, of the Company as at June 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022 are prepared by the Company and approved by the Board of Directors. This Statement of Assets and Liabilities, as restated have been arrived at after making such adjustments and regroupings to the individual Financial Statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to the Restated Summary Statements as set out in Annexure 4(A) to this Report.
The "Restated Statement of Profit and Loss" as set out in Annexure 2 to this report, of the Company for financial year/ period ended on June 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022 are prepared by the Company and approved by the Board of Directors. This Statement of Profit and Loss, as restated have been arrived at after making such adjustments and regroupings to the individual financial statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to the Restated Summary Statements as set out in Annexure 4(A) to this Report.
The "Restated Statement of Cash Flow" as set out in Annexure 3 to this report, of the Company for financial year / period ended on June 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022 are prepared by the Company and approved by the Board of Directors. This Statement of Cash Flow, as restated, have been arrived at after making such adjustments and regroupings to the individual financial statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Restated Summary Statements as set out in Annexure 4(A) to this Report.
Based on the above and also as per the reliance placed by us on the audited financial statements of the company and auditors report thereon which have been prepared by Statutory Auditor of the Company for the financial year / period ended on June 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022, we are of the opinion that the Restated Financial Statements or Restated Summary Statements have been made after incorporating:
Adjustments for the changes in accounting policies retrospectively in respective financial period / years to reflect the same accounting treatment as per the changed accounting policy for all reporting period if any;
Adjustment for any material amounts in the respective financial years / period have been made to which they relate;
They do not contain any extra-ordinary items that needs to be disclosed separately except as shown in the Restated Financial Information;
There are no revaluation reserves, which needs to be disclosed separately in the Restated Financial Statement. There are no qualifications in the Audit Report issued by statutory auditors for the financial year / period ended on June 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022 which would require adjustments in this Restated Financial Statement of the Company.
The Company has not paid dividend on its equity shares during the reporting period.
We have also examined the following Restated financial information of the Company set out in the Annexure as prepared by the management and approved by the Board of Directors of the company for the financial year / period ended June 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022 proposed to be included in the Draft Prospectus / Prospectus ("Offer Document") for the proposed IPO:
Annexure - 4(A): Significant Accounting Policies and Notes to Accounts as restated |
Annexure - 4(B): Reconciliation of Restated Profit & Audit Profit |
Annexure - 4(C): Reconciliation of Restated Equity / Net-worth |
Annexure - 5: Restated Statement of Share Capital |
Annexure - 6: Restated Statement of Reserves & Surplus |
Annexure - 7: Restated Statement of Long-term Borrowings |
Annexure - 8: Restated Statement of Short-term Borrowings |
Annexure - 9: Restated Statement of Trade Payables |
Annexure - 10: Restated Statement of Other Current Liabilities |
Annexure - 11: Restated Statement of Short-Term Provisions |
Annexure - 12: Restated Statement of Property, Plant and Equipment |
Annexure - 13: Restated Statement of Deferred Tax Assets (Net) |
Annexure - 14: Restated Statement of Long-Term Loans and Advances |
Annexure - 15: Restated Statement of Inventories |
Annexure - 16: Restated State-ment of Trade Receivables |
Annexure - 17: Restated Statement of Cash and Cash Equivalents |
Annexure - 18: Restated Statement of Short-Term Loans and Advances |
Annexure - 19: Restated Statement of Other Current Assets |
Annexure - 20: Restated Statement of Revenue from Operations |
Annexure - 21: Restated Statement of Business/ Operating Income |
Annexure - 22: Restated Statement of Cost of Material Consumed |
Annexure - 23: Restated Statement of Changes in Inventories of Finished Goods and Work-in-Progress |
Annexure - 24: Restated Statement of Employee Benefit Expenses |
Annexure - 25: Restated Statement of Finance Cost |
Annexure - 26: Restated Statement of Depreciation and Amortization Expense |
Annexure - 27: Restated Statement of Other Expenses |
Annexure - 28: Restated Statement of Deferred Tax |
Annexure - 29: Restated Statement of Contingent Liabilities |
Annexure - 30: Restated Statement of Accounting Ratios |
Annexure - 31: Restated Statement of Related Party Transactions |
Annexure - 32: Restated Statement of Segment Reporting |
Annexure - 33: Restated Statement of Capitalization |
Annexure - 34: Restated Statement Tax Shelter |
This report should not in any way be construed as re-issuance or re-dating of any of the previous audit reports issued by us or any other firm of Chartered Accountants, nor should this report be construed as a new opinion on any of the financial statements referred to herein.
We have no responsibility to update our report for events and circumstances occurring after the date of the report.
The preparation and presentation of the Financial Statements referred to above are based on the Audited financial statements of the Company in accordance with the provisions of the Act and the Financial Information referred to above is the responsibility of the management of the Company.
In our opinion, the above financial information contained in Annexure 1 to 34 and read along with the Restated Statement of Significant Accounting Polices and Notes as set out in Annexure 4(A) are prepared after making adjustments and regrouping as considered appropriate and have been prepared in accordance with paragraph B, Part II of Schedule II of the Act, the SEBI ICDR Regulations, The Revised Guidance Note on Reports in Company Prospectus and Guidance Note on Audit Reports/Certificates on Financial Information in Offer Documents issued by the Institute of Chartered Accountants of India ("ICAI") to the extent applicable, as amended from time to time, and in terms of our engagement as agreed with you. We did not perform audit tests for the purpose of expressing an opinion on individual balances of account or summaries of selected transactions, and accordingly, we express no such opinion thereon.
We, NGST & Associates, Chartered Accountants have been subjected to peer review process of the Institute of Chartered Accountant of India (ICAI) and hold a valid peer review certificate No.-017853 dated 12/08/2024 issued by the "Peer Review Board" of the ICAI.
Our report is intended solely for use of the management for inclusion in the offer document to be filed with Securities and Exchange Board of India in connection with the proposed issue of equity shares of the Company. Our report should not be used, referred to or distributed for any other purpose except with our prior consent in writing.
For NGST & Associates Chartered Accountants Firm Regn No. - 135159W |
Sd/- Bhupendra Gandhi Partner Mem. No. 122296 UDIN - 24122296BKBMCH2062 Place: Mumbai Date: 29 August 2024 |
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