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Astron Paper & Board Mill Ltd.

BSE: 540824 Sector: Industrials
NSE: ASTRON ISIN Code: INE646X01014
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OPEN 34.90
CLOSE 34.45
VOLUME 8565
52-Week high 54.80
52-Week low 32.30
P/E
Mkt Cap.(Rs cr) 159
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Astron Paper & Board Mill Ltd. (ASTRON) - Auditors Report

Company auditors report

To the Members of

ASTRON PAPER & BOARD MILL LIMITED REPORT ON THE STANDALONEFINANCIAL STATEMENTS: OPINION

We have audited the standalone financial statements of ASTRON PAPER& BOARD MILL LIMITED ("the Company") which comprise the Standalone BalanceSheet as at March 31 2022 the Standalone Statement of Profit and Loss (Including OtherComprehensive

Income) the Standalone Statement of Changes In Equity and theStandalone Statement of Cash Flows for the year then ended and notes to the standalonefinancial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "Standalone FinancialStatements").

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 Act 2013 ("Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India including Indian Accounting Standards (‘Ind AS')specified under Section 133 of the Act the state of affairs of the Company as at March2022 and its profit and other comprehensive income changes in equity and its cash flowsfor the year ended on that date.

BASIS OF OPINION

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report.

We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India ("ICAI") together withthe ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.

EMPHASIS OF MATTER:

We draw attention to the following matters in the Notes to theFinancial Statements:

I. Note No. 32(d)(1) relating to the disputed CENVAT of Exciseamounting to Rs. 2643260/- and appropriate interest as per Excise Law and Penalty of Rs.2643260/-.

II. Note No. 32(d)(2) relating to RCM Liabilities on Ocean Freight Rs.3059267/-.

III. Note No. 32(o) relating to Revenue from Operations in the form ofGST Subsidy Claim amounting to Rs. 82500000/-.

IV. Non-provision for expected credit loss if any in respect of tradereceivables outstanding for more than one year.

V. Note No. 32(m) relating to income tax search carried out at theregistered office of the company subsequent to the balance sheet date. [Refer to Note No.32(m)]

Our opinion is not modified in respect of the above referred matters.

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.

Description of Key Audit Matters:

The Key Audit Matter How the matter was addressed in our audit
1. Impairment Evaluation of Investment in a Subsidiary (Refer to Note No. 6)
The carrying amount of the investments (held at cost less impairment if any) made in a subsidiary as at 31st March 2022 was Rs. 4.04 Crores. The initial cost of investment was also Rs. 4.04 Crores. Comparing the carrying amounts of investments with the balance sheet of the subsidiary to identify whether their net assets were in excess of their carrying amount and assessing whether that subsidiary has historically been profit-making.
We do not consider the valuation of these investments to be at a high risk of significant misstatement or to be subject to a significant level of judgment. However due to their materiality in the context of total assets of the Company this is considered to be significant to our overall audit strategy and planning. Considering the adequacy of disclosures in respect of the investments in the subsidiary.
2. Litigations and Claims (Refer to Note No. 31 & 32(d)
The Company operates in various States within India as well as export of goods which exposes the company to a variety of different Laws and Regulations and implications and interpretations thereof. In such regulatory environment the Company is subject to some legal and tax related claims which have been disclosed for in the financial statements based on the facts and circumstances of each case. Gained an understanding of the process of identification of claims litigations and contingent liabilities and identified key controls in the process.
For selected controls we have performed tests of controls.
Obtained the summary of Company's legal and tax cases and critically assessed management's position through discussions with the Legal Counsel appropriate senior management and operational management on both the probability of success in significant cases and the magnitude of any potential loss.
Taxation and litigations have been identified as a key audit matter due to the status of legal proceedings timescales involved for resolution and the potential financial impact of these on the financial statements. Assessed management's estimate of the possible outcome of the litigations the relevant disclosures made within the financial statements to address whether they appropriately reflect the facts and circumstances of the respective tax and legal exposures and the requirements of relevant accounting standards.
Further such tax litigations involve significant management judgment in assessing the exposure of each case and thus a risk that such cases may not be adequately provided for or disclosed.
3. Claims Receivable on Imported Raw Materials:
The Company imports raw materials i.e. waste paper and some of the chemicals which constituted 78.40% of the total cost of raw materials consumed for the financial year 2021-22. Gained an understanding of the process of identification of claims identified key controls in the process and past trend of amounts at which claims were finally settled with the amount for which claims were filed. For selected controls we have performed tests of controls.
In cases of quality differences the company files quality claims with the respective suppliers. After due verification process the quality claims are allowed and paid by the respective supplier depending upon the quality differences. actual claims received varies depending upon the final quality assessment and its acceptance by the respective suppliers and the company. In respect of claims filed but not accepted/approved by the suppliers and the company as at the end of the financial year the company accounts for such claims at the estimated amount of claim likely to be realized based on the past trend and management estimate of the likely recoverability of claims. Such treatment involves significant management judgment in assessing the recoverability in each case and thus a risk that such claims may not be adequately accounted for. The amounts of claims filed and Assessed management's estimate of the amount of overall claims receivable as at the end of the financial year the possibility of recoverability assessed overall past trend of claims filed and amounts recovered and the requirements of relevant accounting standards.

INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS ANDAUDITORS' REPORT THEREON

The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theAnnual Report but does not include the financial statements and our auditor's reportthereon.

Our opinion on the standalone financial statements does not cover theother information and we do 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 and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIALSTATEMENTS:

The Company's Management and Board of Directors are responsiblefor the matters stated in section 134(5) of the Companies Act 2013 ("the Act")with respect to the preparation of these standalone financial statements that give a trueand fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe Indian Accounting Standards (Ind AS) accounting principles generally accepted inIndia including the Indian Accounting Standards specified under Section 133 of the Actread with the Companies (Indian Accounting Standard) Rules 2015 as amended. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management and Boardof Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

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

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONEFINANCIAL STATEMENTS:

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 a 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 skepticism 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 control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by 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 onCompany'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 disclosuresinadequate 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 conditionsmay cause 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 underlying transactions and events in a manner thatachieves fair presentation.

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 that we identify during our audit.

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 auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:

1. As required by The Companies (Auditor's Report) Order 2020issued by The Central Government Of India in term of section 143 (11) of The CompaniesAct 2013 we enclose in the Annexure-A hereto a statement on the matters specified inparagraphs 3 and 4 of the said order to the extent applicable to the company.

2. As required by section 143(3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

b) In our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books;

c) The Standalone Balance Sheet Standalone the Statement of Profit andLoss including Other Comprehensive Income the Standalone Statement of Changes in Equity& the Standalone Statement of Cash Flows dealt with by this Report are in agreementwith the books of account;

d) In our opinion aforesaid Standalone Balance Sheet the StandaloneStatement of Profit and Loss including Other Comprehensive Income the StandaloneStatement of Changes in Equity & the Standalone Statement of Cash Flows comply withthe Indian Accounting Standards prescribed under section 133 of the Act;

e) On the basis of written representations received from the directorsof the Company as on March 31 2022 and taken on record by the Board of Directors noneof the directors are disqualified as on March 31 2022 from being appointed as a directorin terms of sub-section (2) of section 164 of Act;

f) With respect to the adequacy of internal financial control overfinancial reporting the Company and the operating effectiveness of such controls refer toour separate report in Annexure-B. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controlsover financial reporting;

g) With respect to the other matters included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the of best of our information and according to theexplanations given to us:

i. The Company had the following litigations pending as at the end ofthe financial year which may impact its financial position on final disposal of therespective matters.

Sr. No. Name of The Party /Department Brief Facts of the Case Financial Impact
1. Star Papers Suit Filed under Section 138 of the Negotiable Instruments Act 1881 For Recovery of Dues For Sales of Goods 3358877/-
2. Hi Tech Multi Forms Suit Filed under Section 138 of the Negotiable Instruments Act 1881 For Recovery of Dues For Sales of Goods (Suit Continuing but amount written off in the books of account) 1465029/-
3. Shreeji Enterprise Suit Filed For Recovery Of Dues For Sales of Goods 2167194/-
4. Videocon Industries Limited Operational Creditor in NCLT Proceedings For Recovery Of Dues For Sales of Goods 800221/-
5. Royal Sundaram General Insurance Company-Vehicle Claim Claim for Loss of Vehicle 588750/-
6. C.C.E. & S.T. Disputed CENVAT Claim on Fixed Assets & Penalty Thereon (Company has reversed CENVAT credit of Rs. 2643260/- under protest) (CENVAT Rs. 2643260/- and Penalty Rs. 2643260/-) 5286520/-
7. Office of the Commissioner of Central Goods and Service Tax Audit Commissionerate Rajkot RCM Liability on Ocean Freight (Company has paid Rs. 3059267/- under protest) 3059267/-

ii. The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses.iii.Asat31stMarch2022therewerenoamounts which were required to be transferred to theInvestor Education and Protection Fund by the Company. iv. Management Representation: a.The Management of the Company has represented to us that to the best of it'sknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person(s)or entity(ies) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries. b.The management of the Company has represented that to the best of it's knowledgeand belief no funds (which are material either individually or in the aggregate) have beenreceived by the company from any person(s) or entity(ies) including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries. c. Based on audit procedures which weconsidered reasonable and appropriate in the circumstances nothing has come to our noticethat has caused us to believe that the representations under subclause (i) and (ii) ofRule 11(e) Companies (Audit and Auditors) Rules 2014 (as amended) and provided in clauses(a) and (b) above contain any material misstatement.

v. The company has not declared or paid any dividend during the year.

3. With respect to the matter to be included in the Auditors'Report under Section 197(16) of the Act: In our opinion and according to the informationand explanations given to us the remuneration paid by the Company to its directors duringthe current year is in accordance with the provisions of Section 197 of the Act. Theremuneration paid to any director is not in excess of the limit laid down under Section197 of the Act. The Ministry of Corporate Affairs has not prescribed other details underSection 197(16) of the Act which are required to be commented upon by us.

td> FOR AND ON BEHALF OF
S. N. SHAH & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG. NO. 109782W
S. N. SHAH
PLACE: AHMEDABAD PARTNER
DATED: 11TH JUNE 2022 M. No. 035181
UDIN: 22035181AKTHHO9933

ANNEXURE-A

TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 1 under "Report On Other Legal AndRegulatory Requirements' section of our report of even date to the members of ASTRONPAPER & BOARD MILL LIMITED on the Standalone financial statements of the company forthe year ended 31st March 2022:

In terms of the information and explanations sought by us and given tous by the management of the company and on the basis of such checks of the books andrecords of the company during the course of audit and to the best of our knowledge andbelief we further report that:

i. In respect of its Property Plant & Equipment

Capital Work-in-Progress Investment Properties and Intangible Assets:

a) Maintenance of Records: A. According to the information andexplanations given to us the company has maintained proper records showing fullparticulars including quantitative details and situation of property plant &equipment capital work-in-progress and investment properties. B. According to theinformation and explanations given to us the company has maintained proper recordsshowing full particulars of intangible assets.

b) As explained to us the management in accordance with a phasedprogramme of verification adopted by the company has physically verified the propertyplant & equipment capital work-in-progress and investment properties. To the best ofour knowledge and according to the information and explanation given to us no materialdiscrepancies have been noticed on such verification or have been reported to us.

c) According to the information and explanations given to us and on thebasis of the examination of the records of the company the title deeds of immovableproperties are held in the name of the Company as at the balance sheet date.

d) The Company has not revalued any of its property plant &equipment and intangible assets during the year.

e) According to the information and explanations given to us noproceedings have been initiated during the year or are pending against the Company as atMarch 31 2022 for holding any benami property under the Benami Transactions (Prohibition)Act 1988 (as amended in 2016) and rules made thereunder. ii. In respect of itsInventories:

a) As explained to us the inventories have been physically verified bythe management of the company during the year at reasonable interval. In our opinion thecoverage and procedure of such verification by the Management of the company isappropriate having regard to the size of the Company and the nature of its operations.According to the information and explanations given to us no discrepancies of 10% or morein the aggregate for each class of inventories were noticed on such physical verificationof inventories when compared with books of account.

b) According to the information and explanations given to us thecompany has been sanctioned working capital limits in excess of Rs. 5 Crores in aggregatefrom banks on the basis of security of its current assets. According to the informationand explanations given to us the quarterly returns or statements filed by the Companywith such banks in materiality are in agreement with the unaudited books of account of thecompany of the respective quarters.

iii. Investments/Guarantee/Security/Loans/Advances Granted:

According to information and explanations given to us during the yearthe company has made investments in Life Insurance Fund but not provided any guarantee orsecurity or granted or provided any loans or advances in the nature of loan to anyCompany Firms Limited Liability Partnerships or Other Parties hence other mattersrelated thereto referred to in clause sub-clauses (a) (b) (c) (d) (e) and (f) ofclause (iii) of The Companies (Auditor's Report) Order 2020 are not applicable. iv.According to the information and explanations given to us the company has complied withthe provisions of Sections 185 and 186 of The Companies Act 2013 in respect of grant ofany loans investments guarantees and securities as applicable.

v. According to the information and explanations given to us thecompany has not accepted any deposits from the public within the meaning of section737475 & 76 of the Act and Rules framed thereunder during the year and thereforethe provisions of clause 3(v) of the Order are not applicable to the Company.

vi. We have broadly reviewed the cost records maintained by theCompany pursuant to rules made by the Central Government under section 148 (1). We are ofthe opinion that prima facie the prescribed accounts and records have been maintained andmade. We have however not made a detailed examination of these records with a view todetermine whether they are accurate or complete.

vii. In respect of Statutory Dues:

a) As per the information & explanations furnished to us in ouropinion the company is generally regular in depositing with appropriate authoritiesundisputed statutory dues of Custom Duty T.D.S. GST Employee Provident FundEmployees' State Insurance Cess and other material statutory dues applicable to it.There has been no outstanding as at 31st March 2022 of undisputed liabilities outstandingfor more than six months.

b) According to information and explanations given to us and so far asappears from our examination of books of account there were no statutory dues outstandingas at 31st March 2022 which have not been deposited on account of any dispute except thefollowing disputed dues.

Sr. No. Name of the Act Nature of Dues Amount (Rs.) Period to Which Amount Relates Forum where dispute is pending
1. Central Excise Act 1944 Penalty on CENVAT Disallowed 2643260/- F.Y. 2011-12 & 2012-13 C.C.E. & S.T.

viii. According to the information and explanations given to us andso far as appears from our examination of books of account and other records as applicableand produced before us by the Company there were no transactions relating to previouslyunrecorded income that were surrendered or disclosed as income in the tax assessmentsunder the Income Tax Act 1961 (43 of 1961) during the year.

ix. In respect of Loans & Other Borrowings:

a) According to the information and explanations given to us thecompany has not defaulted in repayment of loans or in the payment of interest thereon andhas repaid the principal amount and made payment of interest on loans or borrowings takenby it from banks.

b) According to the information and explanations given to us so far asappears from our examination of relevant records we are of the opinion that the companyhas not been declared willful defaulter by any bank or financial institution or any otherlender.

c) The company has not raised any new term loan during the year andhence reporting as per clause 3(ix)(c) of the Order is not applicable to the Company.

d) According to the information and explanations given to us and theaudit procedures performed by us and on an overall examination of the financialstatements of the company for the year we are of the opinion that funds raised onshort-term basis have prima facie not been used during the year for long-term purposesby the company.

e) According to the information and explanations given to us and on anoverall examination of the financial statements of the company report that the companyhas not taken any funds during the year from any entity or person on account of or to meetthe obligations of its subsidiaries associates or joint ventures if any and hencereporting under clause 3(ix)(e) of the Order is not applicable to the company.

f) According to the information and explanations given to us and auditprocedures performed by us we report that the company has not raised any loan during theyear on the pledge of securities held in its subsidiaries joint ventures or associatecompanies if any and hence reporting under clause 3(ix)(f) of the Order is notapplicable.

x. In respect of moneys raised by issue of securities:

a) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not raised any moneys byway of initial public offer or further public offer debt instruments) during the year andhence reporting under clause 3(x)(a) of the Order is not applicable.

b) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or convertible debentures (fullypartially or optionally convertible) during the year and hence reporting under clause 3(x)(b) of the Order is not applicable.

xi. In respect of Frauds and Whistle Blower Complaints:

a) According to the information and explanations given to us and to thebest of our knowledge no material fraud by the Company or on the Company has been noticedor reported to us by the management during the year.

b) According to the information and explanations given to us no reportunder sub-section (12) of Section 143 of the Companies Act 2013 has been filed by theauditors in Form ADT- 4 prescribed under rule 13 of Companies (Audit and Auditors) Rules2014 with the Central Government.

c) According to the information and explanations given to us theCompany has not received any whistle-blower complaints from any party during the year.

xii. As the company is not the Nidhi Company clause (xii) of paragraph3 of The Companies (Auditor's Report) Order 2020 is not applicable to it.

xiii. According to the information and explanations given to us thecompany is in compliance with the provisions of sections 177 and 188 of the Companies Act2013 where applicable for related party transactions and the details of related partytransactions have been disclosed in the Notes to the Financial Statements in accordancewith the applicable Accounting Standards.

xiv. In respect of Internal Audit: a) In our opinion the Companyhas an adequate internal audit system commensurate with the size and the nature of itsbusiness. b) We have considered the internal audit reports for the year under audit issuedto the company in determining the nature timing and extent of our audit procedure. xv.According to the information and explanations given to us the Company has not enteredinto any non-cash transaction with directors or persons connected with them and henceclause (xv) of paragraph 3 of The Companies (Auditor's Report) Order 2020 is notapplicable to it during the year.

xvi. In respect of Registration Under Section 45-IA of the ReserveBank of India Act 1934/CIC: a) As the company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934 (2 of 1934) clause (xvi)(a) ofparagraph 3 of The Companies (Auditor's Report) Order 2020 is not applicable to it.

b) According to the information and explanations given to us theCompany has not conducted any Non-Banking Financial or Housing Finance activities duringthe year and clause (xvi)(b) of paragraph 3 of The Companies (Auditor's Report)Order 2020 is not applicable to it. c) As the company is not a Core Investment Company(CIC) as defined in the regulations made by the Reserve Bank of India clause (xvi) (c) ofparagraph 3 of The Companies (Auditor's Report) Order 2020 is not applicable to it.d) According to the information and explanations given to us the company has no CoreInvestment Company (CIC) as part of its group clause (xvi)(c) of paragraph 3 of TheCompanies (Auditor's Report) Order 2020 is not applicable to it.

xvii.The Company has not incurred cash losses during the financialyear covered by our audit and also the immediately preceding financial year.

xviii.There has been no resignation of the statutory auditors ofthe Company during the year and hence reporting under clause (xviii) of paragraph 3 of TheCompanies (Auditor's Report) Order 2020 is not applicable.

xix. According to the information and explanations given to us andon the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities financial position of the companyas the year end other information accompanying the financial statements our knowledge ofthe Board of Directors and management plans and based on our examination of the evidencesupporting the assumptions nothing has come to our attention which causes us to believethat any material uncertainty exists as on the date of the audit report that the Companyis not capable of meeting its liabilities existing at the date of balance sheet as andwhen they fall due within a period of one year from the balance sheet date. We howeverstate that this is not an assurance as to the future viability of the Company. We furtherstate that our reporting is based on the facts up to the date of the audit report and weneither give any guarantee nor any assurance that all liabilities falling due within aperiod of one year from the balance sheet date will get discharged by the Company as andwhen they fall due.

xx. In respect of CSR Activities:

a) There are no unspent amounts towards Corporate Social Responsibility(CSR) requiring transfer of such unspent amounts to a Fund specified in Schedule VII tothe Companies Act 2013 within a period of six months of the expiry of the financial yearin compliance with second proviso to sub-section (5) of section 135 of the said Act.

b) There are no ongoing project under CSR where amount remainingunspent under sub-section (5) of section 135 of the Companies Act 2013 is required to betransferred to special account in compliance with the provision of sub-section (6) ofsection 135 of the said Act.

xxi. According to the information and explanations given to us andbased on the reports issued by the auditors of a subsidiary company "Balaram PapersPrivate Limited" included in the consolidated financial statements of the companyto which reporting on the matters specified in paragraph 3 and 4 of the Order isapplicable provided to us by the management of the Company and based on the considerationof such audit report we report that the audit report of the subsidiary does not have anyqualifications or adverse remarks as reported in para 3 and 4 of the Companies(Auditors' Report) Order 2020.

FOR AND ON BEHALF OF
S. N. SHAH & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG. NO. 109782W
S. N. SHAH
PLACE: AHMEDABAD PARTNER
DATED: 11TH JUNE 2022 M. No. 035181
UDIN: 22035181AKTHHO9933

ANNEXURE-B

TO THE INDEPENDENT AUDITOR'S REPORT

[REFERRED TO IN PARAGRAPH 2(f) UNDER "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS SECTION OF OUR REPORT OF EVEN DATE] FINANCIAL YEAR ENDED 31STMARCH 2022 REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OFSECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls over financialreporting of ASTRON PAPER & BOARD MILL

LIMITED ("the Company") as of March 31 2022 in conjunctionwith our audit of the Standalone Ind AS financial statements of the company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditingprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance

Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects. Our audit involves performing procedures toobtain audit evidence about the adequacy of the internal financial controls system overfinancial reporting and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements 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 internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over its FinancialReporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and to the best of our information and according to theinformation and explanations given to us the company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were commensurate with the nature of thebusiness of the company and operating effectively as at March 31 2022 based on theinternal control over financial reporting criteria established by the company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

FOR AND ON BEHALF OF
S. N. SHAH & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG. NO. 109782W
S. N. SHAH
PLACE: AHMEDABAD PARTNER
DATED: 11TH JUNE 2022 M. No. 035181
UDIN: 22035181AKTHHO9933

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