For the Restated Financial Statements of CLARA INDUSTRIES LIMITED
Auditor's Report on the Restated Financial Statement of Assets and Liabilities as at18th November 2021 Restated Profit and Loss and Cash Flows for the period from 02ndSeptember 2021 to 18th November 2021 of CLARA INDUSTRIES LIMITED (collectively the"Restated Summary Statements")
|The Board of Directors |
|CLARA INDUSTRIES LIMITED |
|127/1 Gram Simbhalka Junardar Paragna |
|Teshil and District Saharanpur |
|UP 247001 IN |
1. We have examined the attached Restated Statements of Assets and Liabilities of CLARAINDUSTRIES LIMITED (the "Company") along with significant accountingpolicies and related notes as at and for the period ended on 18th November 2021 annexedto this report and prepared by the Company for the purpose of inclusion in the OfferDocument (collectively the "Restated Summary Statements" or "RestatedFinancial Statements"). These Restated Standalone Summary Statements have beenprepared by the company and approved by the Board of Directors of the company inconnection with the Initial its proposed Initial Public Offering ("IPO") on theSME Platform of BSE
2. These Restated Standalone Summary Statements have been prepared in accordance withthe requirements of:
i. Section 26 and 32 of Part I of Chapter III to the Companies Act 2013 ("theAct") read with Companies (Prospectus and Allotment of Securities) Rules 2014;
ii. The Securities and Exchange Board of India (Issue of Capital and DisclosureRequirements) Regulations 2018
("ICDR Regulations") issued by the Securities and Exchange Board ofIndia ("SEBI") in pursuance to Section 11 of the Securities and ExchangeBoard of India Act 1992 and related amendments/ clarifications from time to time;
iii. In terms of Schedule VIII Clause IX (9) of the SEBI (ICDR) Regulations 2018 andother provisions relating to accounts of CLARA INDUSTRIES LIMITED we Gupta Agarwal &Associates Chartered Accountants have been subjected to the peer review process of theInstitute of Chartered Accountants of India (ICAI) and hold a valid certificate issued bythe Peer Review Board of the ICAI.
iv. The terms of reference to our engagements with the Company requesting us to carryout the assignment in connection with the Draft Prospectus/ Prospectus being issued bythe Company for its proposed IPO of equity shares on SME Platform of BSE Limited("BSE"); and
v. The Guidance Note on Reports in Company Prospectus (Revised 2019) issued by theInstitute of Chartered Accountants of India ("Guidance Note").
3. The Restated Summary Statements of the Company have been extracted by the managementfrom the Audited Financial Statements of the Company for the period ended on 18thNovember 2021.
4. We have examined the accompanied Restated Statement of Profit and Loss'(Annexure II) for the period ended on 18th November 2021 and the RestatedStatement of Assets and Liabilities' (Annexure I) as on those date forming Part of theFinancial Information' dealt with by this Report detailed below. Both read togetherwith the Significant Accounting Policies (Annexure IV) thereon which are theresponsibility of the Company's management. The information has been extracted from thefinancial statements for the financial period ended on 18th November 2021 audited by usbeing the Statutory Auditors of the Company which are all approved by the Board ofDirectors as on that date and upon which we have placed our reliance while reporting.
Based on our examination we further report that:
a) The Restated Statement of Assets and Liabilities of the Company for the period endedon November 18 2021 examined by us as set out in Annexure I to this examination reportare after making adjustments and regrouping as in our opinion were appropriate and morefully described in the statement of significant accounting policies in Annexure IV.
b) The Restated Statement of Profit and Loss of the Company for the period ended onNovember 18 2021 examined by us as set out in Annexure II to this examination reportare after making adjustments and regrouping as in our opinion were appropriate and morefully described in the statement of significant accounting policies in Annexure IV.
c) The Restated Statement of Cash Flows of the Company for the period ended on November18 2021 examined by us as set out in Annexure III to this examination report are aftermaking adjustments and regrouping as in our opinion were appropriate and more fullydescribed in the statement of significant accounting policies in Annexure IV.
d) The Restated Financial Statements have been made after incorporating adjustmentsfor:
i. The changes if any in accounting policies retrospectively in respective financialperiod to reflect the same accounting treatment as per the changed accounting policy forall the reporting period. ii. Prior period and other material amount in the respectivefinancial period to which they relate.
e) There were no qualifications in the Audit Reports issued by Statutory Auditor (s)for the period ended on November 18 2021 which would require adjustments in thisRestated Financial Statements of the Company.
5. We have also examined the following Financial Information relating to the Companywhich is based on the Restated Financial Statements and approved by the Board of Directorsof the Company and annexed to this report is proposed to be included in the OfferDocument: We have also examined the following financial information ("Other FinancialInformation") proposed to be included in the offer document prepared by themanagement and approved by the board of directors of the company and annexed to thisreport:
|Statement of Share Capital as restated (Annexure - V) |
|Statement of Reserves & Surplus as restated (Annexure - VI) |
|Statement of Short-Term Borrowings as restated (Annexure- VII) |
|Statement of Trade Payables as restated (Annexure- VIII) |
|Statement of Other Current Liabilities as restated (Annexure- IX) |
|Statement of Short-Term Provision as restated (Annexure- X) |
|Statement of Fixed Assets as restated (Annexure- XI) |
|Statement of Deferred Tax Assets (Net) as restated (Annexure- XII) |
|Statement of Inventories as restated (Annexure XIII) |
|Statement of Trade Receivables as restated (Annexure - XIV) |
|Statement of Cash and Cash Equivalents as restated (Annexure - XV) |
|Statement of Short-Term Loans and Advances as restated (Annexure XVI) |
|Statement of Other Current Assets as restated (Annexure - XVII) |
|Statement of Revenue from Operations as restated (Annexure XVIII) |
|Statement of Other Income as restated (Annexure XIX) |
|Statement of Cost of Operation as restated (Annexure XX) |
|Statement of Changes in Inventories of Finished Goods as restated (Annexure XXI) |
|Statement of Employee Benefit Expenses as restated (Annexure XXII) |
|Statement of Finance Cost as restated (Annexure XXIII) |
|Statement of Depreciation and Amortization Expense as restated (Annexure XXIV) |
|Statement of Other Expense as restated (Annexure XXV) |
|Statement of Related Party Transactions as restated (Annexure XXVI) |
|Statement of Capitalisation as restated (Annexure XXVII) |
|Statement of Tax Shelter as restated (Annexure XXVIII) |
|Statement of Other Financial Information as restated (Annexure XXIX) |
|Statement of Reconciliation of Restated profit after tax as restated (Annexure XXX) |
|Statement of Reconciliation of Restated Equity/Net Worth as restated (Annexure XXXI) |
|Statement of Contingent Liabilities as restated (Annexure XXXII) |
6. In our opinion the Restated Financial Statements and the other FinancialInformation set forth in Annexure I to XXXII read with the significant accounting policiesand notes to the restated financial statements have been prepared in accordance withsection 26 of Companies Act 2013 and the SEBI Regulations and the Guidance Note on thereports in Company Prospectus (Revised 2019) issued by the Institute of CharteredAccountants of India (ICAI).
7. Consequently the financial information has been prepared after making suchregroupings and adjustments as were in our opinion considered appropriate to comply withthe same. As a result of these regrouping and adjustments the amount reported in thefinancial information may not necessarily be the same as those appearing in the respectiveaudited standalone financial statements for the relevant period.
8. This report should not in any way construed as a reissuance or redrafting of any ofthe previous audit report issued by us nor should this report be construed as new opinionon any of the standalone financial statement referred to therein.
9. We have no responsibility to update our report for events and circumstancesoccurring after the date of the report.
10. This report is intended solely for your information and for inclusion in the Offerdocument in connection with the
Company's proposed IPO of equity shares and is not to be used referred to ordistributed for any other purpose without our prior written consent.
|For Gupta Agarwal &Associates |
|Chartered Accountants |
|Firm's Registration No. 329001E |
|Jay Shanker Gupta |
|Membership No. 059535 |
|UDIN: 21059535AAAAJO5272 |
|Date: 24-11-2021 |
|Place: Kolkata |