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Asahi Songwon Colors Ltd.

BSE: 532853 Sector: Industrials
NSE: ASAHISONG ISIN Code: INE228I01012
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OPEN 234.15
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VOLUME 876
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P/E 13.87
Mkt Cap.(Rs cr) 277
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OPEN 234.15
CLOSE 235.25
VOLUME 876
52-Week high 346.45
52-Week low 226.00
P/E 13.87
Mkt Cap.(Rs cr) 277
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Asahi Songwon Colors Ltd. (ASAHISONG) - Auditors Report

Company auditors report

To the Members of

Asahi Songwon Colors Limited

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Opinion

We have audited the accompanying Standalone Financial Statements ofAsahi Songwon Colors Limited (the 'Company') which comprise the Balance Sheet as at March31 2022 the Statement of Profit and Loss (including other comprehensive income)Statement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the Standalone Financial Statements including a summary of significantaccounting policies and other explanatory information (hereinafter referred to as"Standalone Financial Statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act2013 ('the Act') in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder Section 133 of the Act read with the Companies

(Indian Accounting Standards) Rules 2015 as amended ('Ind AS') andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2022 its profit total comprehensive income changes in equityand its cash flows for the year then ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) as specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the 'Code of Ethics' issued by Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the Standalone Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the Standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Key Audit Matter Auditor's Response
Property Plant & Equipment (Refer Note No- 3 to 5 of the Standalone Financial Statements ) We tested controls in place over the property plant& equipment cycle evaluated the appropriateness of capitalization policies performed tests of details on costs capitalized and assessed the timeliness of capitalization from capital work-in-progress. We also reviewed the appropriateness of estimated useful lives applied in the calculation of depreciation.
The value of property plant & equipment and capital work-inprogress amounted to Rs 15387.85 Lakhs (i.e. 39.50% of total assets) at the Balance Sheet Date March 31 2022.
There are a number of areas where management judgement impacts the carrying value of property plant and equipment and capital work- in-progress and their respective depreciation profiles. These include :
Our Results: As a result of performance of above procedures we have not identified any circumstances that would led to material adjustments to the carrying value of these assets or change in their useful lives.
- the decision to capitalize or expense costs;
- review of estimated useful lives of assets
- the timeliness of transfers to property plant & equipment from capital work-in-progress.

Information other than Financial Statements & Auditors ReportThereon

The Company's Board of Directors is responsible for the OtherInformation. The Other Information comprises the information included in the Board'sReport including Annexures to Board's Report and Management Discussion & Analysis (butdoes not include the Standalone Financial Statements and our auditor's report thereon).

Our opinion on the Standalone Financial Statements does not cover theOther Information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information identified above and in doing soconsider whether the other information is materially inconsistent with the StandaloneFinancial Statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these Standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income changes in equity and cash flows of the Company inaccordance with the Ind AS and accounting principles generally accepted in India. Theresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgement and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively or ensuring accuracy and completeness of the accounting recordsrelevant to the preparation and presentation of the Standalone Financial Statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the Standalone Financial Statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether theStandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting polices used and thereasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the StandaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Standalone FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the Standalone FinancialStatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report On Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2020 (the"Order") issued by the Central Government of India in terms of sub-section (11)of section 143 of the Companies Act 2013 we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable .

As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief are necessary for the purpose of our audit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including othercomprehensive income Statement of changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid Standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164(2) of the Act.

(f) With respect to the adequacy of internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto or separate report in "Annexure B" to this Report.

(g) With respect to the other matters to be included in the AuditorsReport in accordance with requirements of Section 197(16) of the Act as amended in ouropinion and to the best of our information and according to the explanations given to usthe remuneration paid/provided by the Company to its Directors during the year is inaccordance with the provisions of Section 197.

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditor's) Rule 2014 inour opinion and to the best of our information and according to the explanations given tous :

i. The Company has disclosed the impact of pending litigations on thefinancial position of its Standalone financial statements-Refer Note 40 to the StandaloneFinancial Statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring the amounts required tobe transferred to the Investor Education and Protection Fund by the Company.

iv. a) The management has represented that to the best

of its knowledge and belief no funds have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind offunds) by the Company to or in any other person or entity including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

b) The management has represented that to the best of its knowledgeand belief no funds have been received by the Company from any persons or entitiesincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries; and

c) Based on such audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) contain any materialmisstatement.

v. The final dividend paid by the Company during the year in respect ofthe same declared for the previous year is in accordance with section 123 of the Act tothe extent it applies to payment of dividend. As stated in note 48 to the standalone IndAS financial statements the Board of Directors of the Company have proposed finaldividend for the year which is subject to the approval of the members at the ensuingAnnual General Meeting. The dividend declared is in accordance with section 123 of the Actto the extent it applies to declaration of dividend.

For Mahendra N. Shah & Co. Chartered Accountants ICAI Firm Registration Number: 105775W
Date: May 19 2022 Chirag M. Shah
Place: Ahmedabad Partner Membership Number :045706 UDIN : 22045706AKOBNG4822

"Annexure A"

To the Independent Auditors' Report of even date on the StandaloneFinancial Statements of ASAHI SONGWON COLORS LIMITED

Referred to in paragraph 1 under the heading 'Report on Other Legal& Regulatory Requirements' of our report of even date to the financial statements ofthe Company for the year ended March 31 2022:

1. a) (i) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant &Equipment and Capital work in progress.

(ii) As the Company does not hold any intangible assets reportingunder clause 3(i) of the Order is not applicable.

b) No item of Property Plant and Equipment (Capital work-in-progressand right-of-use assets) were physically verified during the year by the Management andconsequently we are unable to state if the physical verification was carried out atreasonable intervals. Accordingly the question of reporting on material discrepanciesnoted on verification does not arise.

c) Based on the examination of the registered sale deed / transfer deed/ conveyance deed provided to us we report that the title deeds of all the immovableproperties of land and buildings (other than properties where the Company is the lesseeand the lease agreements are duly executed in favour of the Company) disclosed in thefinancial statements included in (property plant and

equipment and capital work in progress) are held in the name of theCompany as at the balance sheet date. Immovable properties of land and buildings whosetitle deeds have been pledged as security for loans are held in the name of the Companybased on the confirmations received by us from lenders.

d) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not revalued itsProperty plant and equipment (including Right-of-use assets) during the year.

e) According to the information and explanations given to us and on thebasis of our examination of the records of the Company there are no proceedings initiatedor pending against the Company for holding any benami property under the Prohibition ofBenami Property Transactions Act 1988 and rules made thereunder.

2. a) The inventory has been physically verified by the managementduring the year. In our opinion the frequency of such verification is reasonable andprocedures and coverage as followed by management were appropriate. No discrepancies werenoticed on verification between the physical stocks and the book records that were 10% ormore in the aggregate for each class of inventory.

b) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has been sanctionedworking capital limits in excess of five crore rupees in aggregate from banks on thebasis of security of current assets. In our opinion and according to the information andexplanations given to us the quarterly returns or statements comprising stock statementsand book debt statements filed by the Company for all quarters are in not in agreementwith the reviewed books of accounts however such differences between books of account andthose submitted to bank are reconciled as stated below.

(Rs in lakhs)

Quarter Name of Bank Particulars of securities provided Amount as per books of accounts Amount as reported in quarterly return/ statement Amount of difference
June 2021 State Bank of India Inventory-Raw Material 1479.34 1487.75 (8.41)
June 2021 State Bank of India Inventory-Stock in process 265.00 262.26 2.74
June 2021 State Bank of India Inventory-Semi Finished Goods 375.21 355.19 20.02
June 2021 State Bank of India Inventory- Finished Goods 1016.57 1007.30 9.27
June 2021 State Bank of India Inventory- Finished Goods in transit 691.96 711.49 (19.53)
June 2021 State Bank of India Inventory- Stores & Packing Materials 369.48 324.90 44.58
June 2021 State Bank of India Trade Receivables 8534.87 8498.90 35.97
September2021 State Bank of India Inventory-Raw Material 1896.88 1906.24 (9.36)
September 2021 State Bank of India Inventory-Stock in process 225.26 229.90 (4.64)
September 2021 State Bank of India Inventory-Semi Finished Goods 119.06 123.69 (4.63)
September 2021 State Bank of India Inventory- Finished Goods 2122.75 2106.90 15.85
September 2021 State Bank of India Inventory- Finished Goods in transit 915.66 908.26 7.40
September 2021 State Bank of India Inventory- Stores & Packing Materials 408.94 398.92 10.02
December 2021 State Bank of India Inventory-Raw Material 1870.22 1867.64 2.58
December 2021 State Bank of India Inventory-Stock in process 353.49 313.39 40.1
December 2021 State Bank of India Inventory-Semi Finished Goods 953.57 753.45 200.12
December 2021 State Bank of India Inventory- Finished Goods 3737.12 3295.37 441.75
December 2021 State Bank of India Inventory- Finished Goods in transit 976.02 874.08 101.94
December 2021 State Bank of India Inventory- Stores & Packing Materials 402.00 404.10 (2.10)
December 2021 State Bank of India Trade Receivables 7950.82 7950.88 (0.06)

3. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not made anyinvestments provided guarantee or security to companies firms Limited LiabilityPartnerships and other parties during the year. The Company has granted loans or advancesin the nature of loans secured or unsecured to companies and any other parties duringthe year in respect of which:

a) The Company has granted loans or advances in the nature of loansduring the year and details of which are given below:

Particulars Aggregate amount granted / provided during the year p In Lakhs) Balance outstanding as at balance sheet date p In Lakhs)
- Subsidiaries Nil Nil
- Joint Ventures Nil Nil
- Associates Nil Nil
- Others 12.75 7.05

The Company has not given guarantee or provided security to any otherentity during the year.

b) The grant of all the above-mentioned loans and advances in thenature of loans provided during the year are in our opinion prima facie notprejudicial to the Company's interest.

c) In respect of loans granted or advances in the nature of loansprovided by the Company the schedule of repayment of principal and payment of interesthas not been stipulated and in the absence of such schedule we are unable to comment onthe regularity of the repayments of principal amounts and payment of interest. (Referreporting under clause (iii)(f) below)

d) There are no amounts due for more than ninety days in respect ofloans granted by the company.

e) No loan or advance in the nature of loan granted by the Companywhich has fallen due during the year has been renewed or extended or fresh loans grantedto settle the overdues of existing loans given to the same parties.

f) The Company has granted loans which are without specifying any termsor period of repayment details of which are given below:

Particulars All Parties- Including Related Party p In Lakhs) Promoters p In Lakhs) Related Parties p In Lakhs)
Aggregate amount of loans in the nature of loans which are without specifying any terms or period of repayment 12.75 Nil Nil
Percentage of loans to the total loans 100% Nil Nil

4. According to the information and explanations given to us and on thebasis of our examination of the records or provided any guarantee or security asspecified under Section 185 of the Companies Act 2013 and the Company has not providedany guarantee or security as specified under Section 186 of the Companies Act 2013.Further the Company has complied with the provisions of Section 186 of the Companies Act2013 in relation to loans given and investments made.

5. According to information and explanation given to us the Companyhas not accepted any deposits from the public in accordance with the provisions ofSections 73 to 76 or any other relevant provisions of the Act and the rules framedthereunder. Accordingly the provisions of clause 3(v) of the Order are not applicable tothe Company and hence not commented upon.

6. The Central Government has prescribed maintenance of Cost Recordsunder section 148(1) of the Companies Act 2013 in respect of manufacturing activities ofthe Company. We have broadly reviewed the accounts and records of the Company in thisconnection and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have however not made a detailed examination of thesaid records with a view to determine whether they are accurate or complete.

7. According to information and explanations given to us in respect ofstatutory dues and on the basis of our examination of the books of account and records :

a) The Company has been generally regular in depositing undisputedstatutory dues including Provident Fund Employees State Insurance Income Tax Goods& Service Tax Duty of Customs Cess and any other material statutory dues with theappropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of the above statutory dues were in arrears as atMarch 31 2022 for a period of more than six months from the date on when they becomepayable.

b) According to the information and explanations given to us there areno material dues of Sales Tax Service Tax Goods & Service Tax and Customs Duty whichhave not been deposited with the appropriate authorities on account of any dispute.However according to information and explanations given to us the following dues ofIncome Tax have not been deposited by the Company on account of disputes

Name of Statute Nature of Dues Forum where dispute is pending Amount (Rs in lakhs) Period to which the amount relates
Income Tax Act Income Tax Income Tax Appellate Tribunal 15.60 Asst Year 2010-11
Income Tax Act Income Tax Income Tax Appellate Tribunal 30.73 Asst Year 2020-21

8. The Company has not surrendered or disclosed any transactionpreviously unrecorded in the books of account in the tax assessments under the Income TaxAct 1961 as income during the year. Accordingly the requirement to report on clause3(viii) of the Order is not applicable to the Company.

9. a) The Company has not defaulted in repayment of loans or

other borrowings or in the payment of interest thereon to any lender.

b) The Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority.

c) Term loans were applied for the purpose for which the loans wereobtained.

d) On an overall examination of the financial statements of theCompany no funds raised on short-term basis have been used for long-term purposes by theCompany.

e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures.

f) The Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies. Hence therequirement to report on clause 3(ix)(f ) of the Order is not applicable to the Company.

10. a) The Company has not raised any money during the year by way ofinitial public offer / further public offer (including debt instruments) hence therequirement to report on clause 3(x)(a) of the Order is not applicable to the Company.

b) The Company has not made any preferential allotment or privateplacement of shares/fully or partially or optionally convertible debentures during theyear under audit and hence the requirement to report on clause 3(x)(b) of the Order isnot applicable to the Company.

11. a) No fraud by the Company or no material fraud on the

Company has been noticed or reported during the year.

b) During the year no report under sub-section (12) of section 143 ofthe Companies Act 2013 has been filed by secretarial auditor or by us in Form ADT - 4 asprescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment.

c) We have taken into consideration the whistle blower complaintsreceived by the Company during the year while determining the nature timing and extent ofaudit procedures.

12. The Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order are not applicable to the Company and hence not commentedupon.

13. In our opinion all transactions with the related parties are incompliance with section 177 and 188 of Companies Act 2013 and the details have beendisclosed in the Financial Statements as required by the applicable Indian accountingstandards.

14. (a) The Company has an internal audit system commensurate with thesize and nature of its business.

(b) The internal audit reports of the Company issued till the date ofthe audit report for the period under audit have been considered by us.

15. In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non-cash transactions with its directorsor persons connected to its directors and hence provisions of Section 192 of theCompanies Act 2013 are not applicable to the Company.

16. (a) In our opinion and according to information and explanationsgiven to us the Company is not required to be registered under section 45IA of theReserve Bank of India Act 1934.

(b) In our opinion the Company has not conducted any Non-BankingFinancial or Housing Finance activities without any valid Certificate of Registration fromReserve Bank of India. Hence the reporting under paragraph clause 3 (xvi)(b) of the Orderare not applicable to the Company.

(c) The Company is not a Core investment Company (CIC) as defined inthe regulations made by Reserve Bank of India. Hence the reporting under paragraph clause3 (xvi)(c) of the Order are not applicable to the Company.

(d) The Company does not have any CIC as part of its group. Hence theprovisions stated in paragraph clause 3 xvi (d) of the order are not applicable to thecompany

17. The Company has not incurred cash losses in the current andimmediately preceding financial year.

18. There has been no resignation of the statutory auditors during theyear and accordingly requirement to report on Clause 3(xviii) of the Order is notapplicable to the Company.

19. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that the Company is not capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due.

20. (a) In respect of other than ongoing projects there are no

unspent amounts that are required to be transferred to a fund specifiedin Schedule VII of the Companies Act (the Act) in compliance with second proviso to subsection 5 of section 135 of the Act. This matter has been disclosed in note 46 to thefinancial statements.

(b) There are no unspent amounts in respect of ongoing projects thatare required to be transferred to a special account in compliance of provision of subsection (6) of section 135 of Companies Act. This matter has been disclosed in note 46 tothe financial statements.

For Mahendra N. Shah & Co. Chartered Accountants ICAI Firm Registration Number: 105775W
Date: May 19 2022 Chirag M. Shah
Place: Ahmedabad Partner Membership Number :045706 UDIN : 22045706AKOBNG4822

"Annexure B"

To the independent auditors' report of even date on the StandaloneFinancial Statements of ASAHI SONGWON COLORS LIMITED.

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (1) OFSUB-SECTION 3 OF SEC.143 OF THE COMPANIES ACT 2013("THE ACT")

We have audited the internal financial controls over financialreporting of Asahi Songwon Colors Limited ("the Company") as of March 31 2022in conjunction with our audit of the Standalone Financial Statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal financial control withreference to the Standalone Financial Statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India. These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to the Standalone Financial Statements based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tothe Standalone Financial Statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to the Standalone FinancialStatements and their operating effectiveness. Our audit of internal financial controlswith reference to the Standalone Financial Statements included obtaining an understandingof internal financial controls with reference to the Standalone Financial Statementsassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's Judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control with reference to the StandaloneFinancial Statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of Standalone Financial Statementsfor external purpose in accordance with generally accepted accounting principles. Acompany's internal financial control over financial reporting includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany. (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of Standalone Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal

Financial Controls over Financial

Reporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies of procedures may deteriorate.

Opinion

In our opinion to the best of our information and according toexplanations given to us the Company has in all material respects an adequate internalfinancial control with reference to the Standalone Financial Statements and such internalfinancial controls were operating effectively as on March 31 2022 based on the internalcontrol with reference to the Standalone Financial Statements criteria established by theCompany considering the essential components of internal controls stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reports issued by theInstitute of Chartered Accountants of India.

For Mahendra N. Shah & Co.
Chartered Accountants
ICAI Firm Registration Number: 105775W
Date: May 19 2022 Chirag M. Shah
Place: Ahmedabad Partner
Membership Number :045706
UDIN : 22045706AKOBNG4822
December 2021 State Bank of India Inventory- Stores & Packing Materials 402.00 404.10 (2.10) Refer Note Below
December 2021 State Bank of India Trade Receivables 7950.82 7950.88 (0.06)

Note: Reason for Differences

- The differences in inventories and trade receivables are majorly onaccount of goods in transit where the goods have been physically dispatched from theCompany location however the same has not been considered as revenue from the purpose ofrevenue recognition principles and hence reversed from books of accounts for respectivequarter ends.Similarly goods in transit for goods which have not reached respectiveCompany locations are not considered howeverconsidered as purchases as per accountingprinciples. This has lead to offsetting differences between Inventory trade receivablesand trade payable balances.

- The management basis their understanding with banks submits stockstatement of physical stock as available at respective locations at the period end.Accordingly adjustment for goods in transit (inward and outward) is not considered for thepurpose of filing returns with banks.

54 Events after the reporting period

There was no significant event after the end of the reporting periodwhich require any adjustment or disclosure in the Standalone Financial Statements.

55 The Company do not have any Benami property where any proceedinghas been initiated or pending against the Company for holding any Benami property.

56 The Company do not have any transactions with companies struck off.

57 The Company do not have any charges or satisfaction which is yet tobe registered with ROC beyond the statutory period.

58 The Company have not traded or invested in Crypto currency orVirtual Currency during the financial year.

59 The Company have not any such transaction which is not recorded inthe books of accounts that has been surrendered or disclosed as income during the year inthe tax assessments under the Income Tax Act 1961 (such as search or survey or any otherrelevant provisions of the Income Tax Act 1961

60 The Company have not received any fund from any person(s) orentity(ies) including foreign entities (Funding Party) with the understanding (whetherrecorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Funding Party (UltimateBeneficiaries) or

b. provide any guarantee security or the like on behalf of theUltimate Beneficiaries

61 The Company have not advanced or loaned or invested funds to anyother person(s) or entity(ies) including foreign entities (Intermediaries) with theunderstanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the company (UltimateBeneficiaries) or

b. provide any guarantee security or the like to or on behalf of theUltimate Beneficiaries

62 During the previous year ended March 31 2021 the Central Governmenthas published The Code on Social Security 2020 and Industrial Relations Code 2020("the Codes") in the Gazette of India inter alia subsuming various existinglabour and industrial laws which deals with employees related benefits including postemployment. The effective date of the code and the rules are yet to be notified. Theimpact of the legislative changes if any will be assessed and recognised postnotification of the relevant provisions.

63 Authorisation for issue of the Standalone Financial Statements

The Standalone Financial Statements are approved for by Audit Committeeand the Board of Directors at their respective meeting conducted on May 19 2022.

The figures of the previous period have been regrouped / reclassifiedwherever necessary so as to be in conformity with the figures of the current period'sclassification / disclosure.

In terms of our report attached. For and on behalf of the Board of Directors Asahi Songwon Colors Limited CIN: L24222GJ1990PLC014789
For Mahendra N. Shah & Co. Pratik Shah Paru M. Jaykrishna
Chartered Accountants ICAI Firm Registration No. 105775W Chief Financial Officer Chairperson & Mg. Director (DIN 00671721)
Chirag M. Shah Saji V. Joseph Gokul M. Jaykrishna
Partner Company Secretary Jt. Managing Director & CEO
Membership No. 045706 Place : Ahmedabad Date : May 19 2022 Membership No. F 9596 (DIN 00671652) Place : Ahmedabad Date : May 19 2022

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