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Sanwaria Consumer Ltd.

BSE: 519260 Sector: Agri and agri inputs
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OPEN 0.85
VOLUME 193973
52-Week high 2.03
52-Week low 0.60
Mkt Cap.(Rs cr) 63
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.85
CLOSE 0.86
VOLUME 193973
52-Week high 2.03
52-Week low 0.60
Mkt Cap.(Rs cr) 63
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sanwaria Consumer Ltd. (SANWARIA) - Auditors Report

Company auditors report




Report on the Audit of the standalone financial statements


1. We have audited the accompanying standalone financial statements of SanwariaConsumer Limited (the 'Company') which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

Qualified opinion

2. In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph below the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (the 'Act') in the manner so required andgive a true and fair view subject to observations given in Schedule "A" inconformity with the accounting principles generally accepted in India including IndianAccounting Standards ('Ind AS') specified under Section 133 of the Act of the state ofaffairs (financial position) of the Company as at 31 March 2021 and its Loss (financialperformance including other comprehensive income) its cash flows and the changes inequity for the year ended on that date.

Basis for Qualified opinion

e) The Company has shown all expenses and Income on the accrual basis which wererelated to current financial year as it was shown in the policy of company that theCompany follows accrual basis of accounting but in the following cases it has followedcash basis of accounting hence loss has been reduced by Rs. 45.55 Lacs :

Sr. No. Particulars Amount
1 Advertising and Publicity 19929.00
2 Postage and Telephone 1898.00
3 Printing and stationery 22176.00
4 Professional Expenses 1338527.00
5 Security Expenses 3155792.04
6 Traveling Expenses 17300.00

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ('ICAI') together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Act and the rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Key Audit Matters

i. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

ii. One creditor Mr. Kishor Ramniklal unadikat sole proprietor of M\s Shakti ClearingAgency has filed company petition under section 9 of The Insolvency and Bankruptcy Code2016 read with the rule 6 of The Insolvency and Bankruptcy Rules 2016 to initiateCorporate Insolvency Resolution process against the Company before the NCLT and the saidapplication has been admitted by the Authority wide no. (MP) CP (IB) No. 7 / 9 / NCLT /AHM / 2019 at 29th of May 2020 and NCLT has appointed Mr. Rajiv Goyal as InsolvencyResolution Professional (IRP). The CoC approved the replacement of IRP with 100% votingand IA No. 111 of 2020 is allowed as prayed by the Applicant. With the Order of NationalLaw Company tribunal (NCLT) no. (MP) CP (IB) 7 of 2019 with IA 111 of 2020 Dated 04September 2020 and The Court give order to Mr. Rajiv Goyal IRP to handed over thedocuments/papers & give charge to Mr. Gautam Mittal as Resolution Professional.

iii. RP had invited expression of interest from interested parties for revival of theCompany. Five eligible EOI's were received after-which Resolution Plans were invited. TheResolution Plans received from these PRAs were discussed and put on vote before the COCfor approval. None of the Resolution Plans were approved by the members of the COC. Whilerejecting the Resolution Plans the COC further decided to Liquidate the Company for theinitiation of Liquidation Process of the Company has been filed with hon'ble NCLT.

Information other than the Financial Statement and Auditor's Report thereon

iv. The Company's Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual Report but does notinclude the financial statements and our auditor's report thereon. Our opinion on thefinancial statements does not cover the other information and we do not express any formof assurance conclusion thereon. In connection with our audit of the financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with Governance for the standalonefinancial statements

v. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view subject to observations given in Schedule "A" ofthe state of affairs (financial position) profit or loss (financial performance includingother comprehensive income) changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the Ind AS specifiedunder Section 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 subject toobservations given in Schedule "A" and are free from material misstatementwhether due to fraud or error.

vi. 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.

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

Auditor's Responsibilities for the Audit of the financial statements

viii. 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 withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

ix. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3) (i) ofthe Act we are also responsible for explaining our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

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

xi. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

xii. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when 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.

xiii. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our qualified audit opinion on the standalone financial statements.

Report on other Legal and Regulatory Requirements

xiv. As required by Section 197(16) of the Act we report that the Company has paidremuneration to its directors during the year in accordance with the provisions of andlimits laid down under Section 197 read with Schedule V to the Act.

xv. As required by the Companies (Auditor's Report) Order 2016 (the 'Order') issued bythe Central Government of India in terms of Section 143(11) of the Act we give in the AnnexureB a statement on the matters specified in paragraphs 3 and 4 of the Order.

xvi. Further to our comments in Annexure B as required by Section 143(3) of theAct we report that:

9. we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

10. 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;

11. the standalone financial statements dealt with by this report are in agreement withthe books of account;

12. in our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act;

13. on the basis of the written representations received from the directors and takenon record by the Board of Directors none of the directors is disqualified as on 31 March2021 from being appointed as a director in terms of Section 164(2) of the Act;

14. we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as on 31st March 2021 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date and ourreport as per Annexure C expressed an unmodified opinion;

15. 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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

-the Company has disclosed the impact of pending litigations on its financial positionin the standalone financial statements;

-the Company has made provision as required under the applicable law or Ind AS formaterial foreseeable losses if any on long-term contracts including derivativecontracts;

-there were no amounts which were required to be transferred to the Investor Educationand Protection Fund by the Company during the year ended 31 March 2021;

Date: 24/06/2021 For PRAMOD K SHARMA & CO.
Place: Bhopal Chartered Accountants
M. No.: 076883; FRN: 007857C
UDIN: 21076883AAAAQE5923