To the Members of
Aartech Solonics Limited Bhopal
Report on Financial Statements
We have audited the accompanying Financial Statements of AARTECH SOLONICS LIMITED ('theCompany') which comprise the Balance Sheet as at March 31 2020 the statement of Profitand Loss Account and the cash flow statement for the year ended on that date annexedthereto and a summary of significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Financial Statements
The company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records; relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under. We conducted our audit in accordancewith the Standards on Auditing issued by the Institute of Chartered Accountants of Indiaas specified under Section 143(10) of the Act.
Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risk of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view procedures in order to design auditprocedures that are appropriate in the circumstances but not for the purpose of expressingan opinion on whether the Company has in place an adequate internal financial controlssystem over financial reporting and the effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure 1a statement on the matters specified in paragraphs 3 and4 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 bestof 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 theCompany so far as it appears from our examination of those books;
c. The Balance Sheet Statement of Profit & Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
e. On the basis of written representations received from the Directors as on March 312020 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2020 from being appointed as a Director in terms of section 164(2) of theAct;
f. With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2020 in our opinion and to thebest of our information and according to the explanations given to us:
I. The Company does not have any pending litigations which would impact its financialposition.
II. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.
III. There has been no delay in transferring amounts if any to the Investor Educationand Protection Fund by the Company.
For SPARK & Associates
CA Roopak Jain
(Membership No.: 410002)
Date: June 29 2020
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Issued under Companies (Auditor's Report) Order 2020)
Referred to in our Report of even date
1a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. The Company has carried out physical verification of its fixed assets during theyear. In our opinion this periodicity of physical verification is reasonable havingregard to the size of the Company and the nature of its assets.
c. According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds provided to us we report thatthe title deeds comprising all the immovable properties of land and buildings which arefreehold are held in the name of the Company as at the balance sheet date.
2a. The inventories have been physically verified by the Management during the year. Inour opinion the frequency of verification is reasonable.
b. In our opinion the procedures of verification of inventories followed by theManagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
c. In our opinion the Company has maintained proper records of inventories. Thediscrepancies noticed on physical verification of inventories as compared to book recordswere not material and the same have been properly dealt with in the books of account.
3a. The Company has granted loans to parties covered in the register maintained underSection 189 of the Companies Act 2013. In our opinion and according to the informationand explanations provided to us the terms and conditions of the grant of such loans areprima facie not prejudicial to the Company's interest.
b. The schedule of repayment of principal and payment of interest has been stipulatedfor the loans granted and the repayment/receipts are not regular.
c. The Principal and interest are overdue in respect of loans granted to companiesfirms or other parties listed in the register maintained under section 189 of theCompanies Act 2013 which are overdue for more than ninety days.
4. In our opinion and according to the information and explanations provided to us theCompany has granted loans to the parties covered under Section 185 of the Act. The Companyhas complied with the provisions of Section 186 of the Act in respect of investments madeor loans or guarantee or security provided to the parties covered under Section 186.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public in accordance with provisions ofSections 73 to 76 of the Act and rules framed there under.
6. We have been informed that the Central Government has not prescribed maintenance ofcost records under Section 148(1) of the Act for any products of the Company.
7. a. According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues including Provident FundEmployees State Insurance Income Tax Service Tax Sales Tax Wealth Tax Goods andService Tax etc. with appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees State Insurance Income Tax Service TaxSales Tax Wealth Tax Goods and Service Tax and other material statutory dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable.
b. According to the records of the Company no dues of Income Tax Service Tax WealthTax Goods and Service Tax Sales Tax Value Added Tax etc. are outstanding on account ofany dispute.
8. According to the information and explanations given to us no transactions have beensurrendered or disclosed as income during the year in the tax assessments under the Incometax act 1961.
9. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to its bankers. The Company did not haveany outstanding dues to any financial institution or debentures holders during the year.
10. (a) In our opinion and according to the information and explanations provided bythe management the Company has partly utilized the money raised by way of Public offerfor the purposed for which they were raised.
(b) In our opinion and according to the information and explanations provided by themanagement the Company has not made any preferential allotment or private placement ofshares or convertible debentures during the year.
11. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and according to the information and explanationsprovided by the management we report that no fraud by the Company or no material fraud onthe Company by the officers and employees of the Company has been noticed or reportedduring the year.
12. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.
13. According to the information and explanations provided by the managementtransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act 2013 where applicable and the details have been disclosed in the financialstatements as required by the applicable accounting standards.
14. (a) The Company has an internal audit system commensurate with the size and natureof the business.
(b) The report of the Internal Auditor for the period under audit was considered by thestatutory auditor.
15. According to the information and explanations provided by the management theCompany has not entered into any non-cash transactions with directors or persons connectedwith him referred to in section 192 of Companies Act 2013.
16. According to the information and explanations provided to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.
17. The Company has not incurred cash losses during the current and immediatelypreceding financial year. The Provision of Section 15(1) of the Sick Industrial CompaniesAct 1985 shall not be applicable to the Company.
18. According to the information and explanations provided to us statutory auditor hasnot given any resignation during the year and hence reporting requirements under thisclause of the Order are not applicable to the Company and not commented upon.
19. According to the information and explanations provided to us on the basis of thefinancial ratios and expected dates of realization of financial assets payment offinancial liabilities and other information accompanying the financial statements nomaterial uncertainty exists as on the date of the audit report.
For SPARK & Associates
CA Roopak Jain
(Membership No.: 410002)
Date: June 29 2020