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Saboo Sodium Chloro Ltd.

BSE: 530461 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE440C01016
BSE 00:00 | 08 Feb 14.95 -0.15
(-0.99%)
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NSE 05:30 | 01 Jan Saboo Sodium Chloro Ltd
OPEN 15.10
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VOLUME 42660
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Mkt Cap.(Rs cr) 63
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OPEN 15.10
CLOSE 15.10
VOLUME 42660
52-Week high 21.90
52-Week low 12.21
P/E
Mkt Cap.(Rs cr) 63
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Saboo Sodium Chloro Ltd. (SABOOSODIUM) - Auditors Report

Company auditors report

To

The Members of

SABOO SODIUM CHLORO LTD

Report on Audit of the Financial Statements

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the financial statements of SABOO SODIUM CHLORO LTD which comprise thebalance sheet as at 31st March 2022 and the statement of Profit and Loss and statement ofcash flows for the year ended 31st March 2022 and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements except the Matters described in"Annexure C" give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31st March2022 its profit and its cash flows for the year ended on that date.

Basis for Qualified Opinion

We draw attention to the matters described in "Annexure C" the effects/possible effects of which and matters where we are unable to obtain appropriate auditevidences individually or in aggregate are material to the financial statements.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Key Audit Matter

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Key Audit Matters Description of Key Audit Matter

Evaluation of tax positions
The key audit matter How the matter was addressed in our audit
No such matters

Information other than the financial statements and auditors' report thereon

The Company's board of directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report but does not include the financial statementsand our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

That Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the 'Annexure A' a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

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

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

 

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) Except for the matters described in Basis of Qualified Opinion paragraph inour opinion the aforesaid financial statements comply with the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms ofSection 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in 'Annexure B'.

g) With respect to the matter to be included in the Auditor's Report under section197(16) In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under section 197(16) which arerequired to be commented upon by us.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed pending litigations and the impact on its financialposition - refer note 32 to the Standalone Financial Statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For GOPAL SHARMA & CO.
Chartered Accountants
FRN:002803C
CA Gautam Sharma
(Partner)
Membership No:079225
UDIN : 22079225AJWIUM9189
Date: 30.05.2022
Place: Jaipur

Annexure A to the Auditors Report

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" in the Independent Auditors' Report of even date to the members ofSABOO SODIUM CHLORO LTD on the financial statements for the year ended March 31 2022)

1) (A)

(i) The Company has maintained proper records and registers showing full particularsincluding quantitative details and situation of property plant and equipment.

(ii) The Company has maintained proper records showing full particulars of intangibleassets.

(B) According to the information and explanations given to us the management of theCompany has a regular program of physical verification of its property plant andequipment by which all property plant and equipment are verified in a phased manner overa period of three years as explained by the management. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(C) The Company had immovable properties (other than properties where the Company isthe lessee and the lease agreements are duly executed in favor of the lessee).Accordingly clause 3(i) (c) of the Order is applicable. Proper records and registers havemaintained.

(D) According to the information and explanations given to us and on the basis of our

examination of the records of the Company the Company has not revalued its propertyplant and equipment (including right of use assets) or intangible assets or both duringthe year.

(E) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any Benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made thereunder.

2) (A) The Company is a manufacturing company Accordingly it holds physicalinventories in the form of raw material and WIP and accordingly clause 3(ii)(a) of theOrder is applicable. According to the information and explanations given to us inventoryhas been physically verified by the management.

No material discrepancies were noticed on such verification.

(B) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been sanctioned workingcapital limits in excess of five crore rupees in aggregate from banks or financialinstitutions on the basis of the security of current assets at any point of time duringthe year. Accordingly clause 3(ii)(b) of the Order is not applicable to the Company.

3) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has made investments in shares ofother companies. As per the explanation provided to us. The Company had providedguarantees; same is stated in the financial statement.

(A)

(a) Based on the audit procedures carried out by us and as per the information andexplanations given to us the Company has granted loans to subsidiaries as below:

Particulars Loans (Rs. In millions)
Aggregate amount during the year - Subsidiary* NIL
Balance outstanding as at the balance sheet date NIL
- Subsidiary*

(b) According to the information and explanations given to us and based on the auditprocedures conducted by us in our opinion the terms and conditions of the grant of loansand advances in the nature of loans during the year are prima facie not prejudicial tothe interest of the Company.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company in our opinion in the case of loans andadvances in the nature of loans given the repayment of principal and payment of interesthas not been stipulated.

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there is no overdue amount for more than ninetydays in respect of loans and advances in the nature of loans given.

(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there is no loan or advance in the nature ofloans granted falling due during the year which has been renewed or extended or freshloans granted to settle the over due's of existing loans or advances in the nature ofloans given to same parties.

(f) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has granted any loans or advancesin the nature of loans either repayable on demand or without specifying any terms orperiod of repayment.

4) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has neither made any investmentsnor has it given loans or provided guarantee or security as specified under Section 185 ofthe Companies Act 2013 ("the Act") and the Company has not provided anysecurity as specified under Section 186 of the Act. Further in our opinion the Companyhas complied with the provisions of Section 186 of the Act in relation to loans givenguarantees provided and investments made.

5) The Company has not accepted any deposits or amounts which are deemed to be depositsfrom the public. Accordingly clause 3(v) of the Order is not applicable.

6) According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148(1) of the Act for theservices provided by it. Accordingly clause 3(vi) of the Order is not applicable.

7) (A) As explained to us the company has been generally regular in depositingundisputed statutory dues with appropriate authorities including Provident Fund IncomeTax Sales Tax Service Tax duty of customs duty of excise Value added Tax Goods andService Tax cess and other statutory dues applicable to it. Further according to theinformation & explanations given to us no undisputed amounts payable in respect ofaforesaid dues which were in arrear as at 31.03.2022 for a period of more than six monthfrom the date they become payable.

(B) According to the information and explanation given to us there are no dues ofIncome Tax Sales Tax Service Tax Duty of Customs Duty of Excise or Value Added Taxwhich have not been deposited on account of any dispute except the following demands:-

Sr. No. Name of the Statue Nature of the Dues Amount (Rs. In lakhs) Period for which the amount relates Amount deposited (under Protest) (in Rs.) Remarks if any
1 Income Tax Act 1961 Income Tax Demand (TDS) for A.Y. 2015-16 294451.00 A.Y. 2015-16 294451.00
2 Income Tax Act 1961 Income Tax Demand (TDS) for A.Y. 2016-17 36727.50 A.Y. 2016-17 36727.50
3 Income Tax Act 1961 Income Tax Demand for A.Y. 2017-18 6716.00 A.Y. 2017-18 6716.00
4 Income Tax Act 1961 Income Tax Demand (TDS) for A.Y. 2018-19 8698.50 A.Y. 2018-19 8698.50
5 Income Tax Act 1961 Prior Years 430754.98 - 430754.98

8) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not surrendered or disclosedany transactions previously unrecorded as income in the books of account in the taxassessments under the Income Tax Act 1961 as income during the year.

9) (A) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not defaulted in therepayment of loans or borrowings or in the payment of interest thereon to any lender.

(B) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been declared a willfuldefaulter by any bank or financial institution or government or government authority.

(C) In our opinion and according to the information and explanations given to us by themanagement term loans were applied for the purpose for which the loans were obtained.

(D) According to the information and explanations given to us and on an overallexamination of the balance sheet of the Company we report that no funds raised onshort-term basis have been used for long-term purposes by the Company.

(E) According to the information and explanations given to us and on an overallexamination of the standalone financial statements of the Company we report that theCompany has not taken any funds from any entity or person on account of to meet theobligations of its subsidiaries as defined in the Act. The Company does hold investmentin associate or joint venture (as defined in the Act) during the year ended 31 March 2022.

(F) According to the information and explanations given to us and procedures performedby us we report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries (as defined under the Act).

(A) Based on our audit procedures and according to the information given by themanagement the money raised by way of initial public offer or further public offer(including debt instruments) and term loans have been applied for the purpose for whichthey were obtained.

(B) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause 3(x)(b) of the Order is not applicable.

10) (A)Based on examination of the books and records of the Company and according tothe information and explanations given to us considering the principles of materialityoutlined in the Standards on Auditing we report that no fraud by the Company or on theCompany has been noticed or reported during the course of the audit.

(B) According to the information and explanations given to us no report undersub-section of Section 143 of the Act has been filed by the auditors 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 complaints received by theCompany during the year while determining the nature timing and extent of our auditprocedures.

11) The company is not a Nidhi Company. Therefore clause 3(xii) of the order is notapplicable to the company.

12) According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.

13) (A) Based on information and explanations provided to us and our audit proceduresin our opinion the Company has an internal audit system commensurate with the size andnature of its business.

(B) Internal audit reports of the Company issued till date for the period under audithas not been provided to us.

14) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with its directors or personsconnected to its directors and hence provisions of Section 192 of the Act are notapplicable to the Company.

15) (A) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly clauses 3(xvi)(a) and 3(xvi)(b) of the Order are notapplicable.

(B) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.

(C) According to the information and explanations provided to us during the course ofaudit the Group does not have any CICs.

16) The Company has not incurred cash losses in the current and in the immediatelypreceding financial year.

17) There has been no resignation of the statutory auditors during the year.

18) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the standalone 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. We however state that this is not anassurance as to the future viability of the Company. We further state that our reportingis based on the facts up to the date of the audit report and we neither give any guaranteenor any assurance that all liabilities falling due within a period of one year from thebalance sheet date will get discharged by the Company as and when they fall due.

19) In our opinion and according to the information and explanations given to us thereis no unspent amount under sub-section (5) of section 135 of the Act pursuant to anyproject. Accordingly clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.

For GOPAL SHARMA & CO.
Chartered Accountants
FRN:002803C
CA Gautam Sharma
(Partner)
Membership No:079225
UDIN : 22079225AJWIUM9189
Date: 30.05.2022
Place: Jaipur

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of SABOOSODIUM CHLORO LTD on the financial statements for the year ended March 31 2022]

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SABOOSODIUM CHLORO LTD as of March 31 2022 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its 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's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing specified under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing 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 judgment 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 and appropriate toprovide a basis for our qualified audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of un-authorized 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 Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including 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 on the achievement of the objectives of the control criteria theCompany has maintained in all material respects adequate internal financial controlsover financial reporting and such internal financial controls over financial reportingwere operating effectively as at March 31 2022 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.

For M/s Gopal Sharma & Co.
Chartered Accountant
(Firm Registration No. 002803C)
CA Gautam Sharma
(Partner)
(M.NO.- 079225)
UDIN: 22079225AJWIUM9189
Place: Jaipur

Annexure C - Referred to in our report under "Basis of Qualified Opinion"paragraph

1) The total turnover of Salt (Edible Salt) is being booked on MRP basis as per policyof the company in the Profit and Loss statement and subsequently the credit notes wereissued to vendors and shown as Dealer & Distributor discount hence approximately 58%of Trade Discount is shown.

2) For Hospitality division of Company the physical accounting records for the periodfrom April '21 to November '21 are not available as they are detained with GST departmentfor scrutiny and not yet released.

3) IND AS compliance for preparing financial statements

According to Companies (Indian Accounting Standards) Rules 2015 company M/s SABOOSODIUM CHLORO LTD is required to comply with the Indian Accounting Standards (Ind AS) forthe accounting periods beginning on or after 1st April 2017 but the company has beenpreparing and presenting their financial statements according to Accounting Policies(GAAP).

4) Consolidation requirements as per section 129(3) of Companies Act 2013

As per section 129 (3) of companies act 2013 where a company has one or moresubsidiaries it shall in addition to financial statements provided under sub-section(2) prepare a consolidated financial statement of the company and of all the subsidiariesin the same form and manner as that of its own which shall also be laid before the annualgeneral meeting of the company along with the laying of its financial statement undersub-section (2): Provided that the company shall also attach along with its financialstatement a separate statement containing the salient features of the financial statementof its subsidiary or subsidiaries in such form as may be prescribed: Provided further thatthe Central Government may provide for the consolidation of accounts of companies in suchmanner as may be prescribed. For the purposes of this sub-section the word"subsidiary" shall include associate company and joint venture.

M/s SABOO SODIUM CHLORO LTD has significant influence and control of 49.66% in M/sFORTRESS HOTELS & RESORTS PVT LTD but the company is not preparing its financials asper section 129(3) of Companies Act 2013.

5) TRADE RECEIVABLES

In the case of Trade Receivables there is no age wise classification for tradereceivables for more than six months and less than six months. Aging of trade receivableabove six months have not been prepared and provided to us. Therefore we are unable tocomment upon correctness of provision to be made against doubtful and unrecoverable tradereceivables. The company has not provided debtor balance confirmations for some tradereceivables.

6) Balance Sheet disclosure requirements as per Schedule III

The balance sheet of the company is to be prepared as per schedule III with some ofdisclosures. i.e current maturities of terms loans. The company has not disclosed theserequirements while preparing their financial statements.

For M/s Gopal Sharma & Co.
Chartered Accountant
(Firm Registration No. 002803C)
CA Gautam Sharma
(Partner)
(M.NO.- 079225)
UDIN: 22079225AJWIUM9189
Place: Jaipur
Date: 30.05.2022

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