To the Members of Siddhika Coatings Limited
Report on the Audit of the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of SiddhikaCoatings Limited (the Company') which comprise the Balance Sheet as at 31 March2022 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the Act') in the manner so required and give a true andfair view in conformity with the Accounting Standards specified under section 133 of theAct read with rule 7 of the Companies (Accounts) Rules 2014 (as amended) and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2022 and its profit and its cash flows for the year ended on that date.
Basis for Opinion
3. 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 Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI')together with the ethical requirements that are relevant to our audit of the 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
4. We draw attention to Note 38 to the accompanying standalone audited financialstatements with regard to the management's evaluation of uncertainty due to the outbreakof COVID-19 and its impact on the future performance operations of the Company. Ouropinion is not modified in respect of this matter
Key Audit Matter
5. 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.
6. We have determined that there are no key audit matters to communicate in our report.
Information other than the Financial Statements and Auditor's Report thereon
7. The Company's Board of Directors are responsible for the other information. Otherinformation does not include the Standalone financial statements and our auditor's reportthereon.
Our opinion on the Standalone financial statements does not cover the other informationand we do not 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 in theaudit or otherwise appears to be materially misstated.
If based on the work we have performed on the other information obtained prior to thedate of this auditor's report we conclude that there is a material misstatement of thisother information we are required to report that fact. Reporting under this section isnot applicable as no other information is obtained at the date of this auditor's report.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements
8. The accompanying standalone financial statements have been approved by the Company'sBoard of Directors. The Company's Board of Directors are responsible for the mattersstated in section 134(5) of the Act with respect to the preparation and presentation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting Standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014 (as amended). This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
9. In preparing the standalone financial statements the Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intend to liquidate the Companyor to cease operations or has no realistic alternative but to do so.
10. Those Board of Directors are also responsible for overseeing the Company'sfinancial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
11. 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.
12. As part of an audit in accordance with Standards on Auditing specified undersection 143(10) of the Act we exercise professional judgment and maintain professionalskepticism 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) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system with reference to financial statements inplace and the operating effectiveness of such 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.
13. 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.
14. 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.
Report on Other Legal and Regulatory Requirements
15. As required by section 197(16) of the Act based on our audit we report that theCompany has paid remuneration to its directors during the year in accordance with theprovisions of and limits laid down under section 197 read with Schedule V to the Act.
16. As required by the Companies (Auditor's Report) Order 2020 (the Order')issued by the Central Government of India in terms of section 143(11) of the Act we givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Orderto the extent applicable.
17.Further to our comments in Annexure A as required by section 143(3) of the Actbased on our audit we report to the ext ent applicable that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit of the accompanying standalonefinancial statements;
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) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014 (as amended);
d) On the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2022 from being appointed as a director in terms of section 164(2) of the Act;
e) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company as on 31 March 2022 and operating effectiveness ofsuch controls refer to our separate Report in Annexure B wherein we have expressed anopinion; and
f) 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:
i. the Company does not have any pending litigation which would impact its financialposition as at 31 March 2022
ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at 31 March 2022
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31 March 2022
iv. a. The management has represented that to the best of its knowledge and belief nofunds have been advanced or loaned or invested (either from borrowed funds or securitiespremium or any other sources or kind of funds) by the Company to or in any person orentity including foreign entities (the intermediaries') with the understandingwhether recorded in writing or otherwise that the intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the
Company (the Ultimate Beneficiaries') or provide any guarantee security or thelike on behalf the Ultimate Beneficiaries; b. The management has represented that to thebest of its knowledge and belief no funds have been received by the Company from anyperson or entity including foreign entities (the Funding Parties') with theunderstanding whether recorded in writing or otherwise that the Company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries') orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries; andc. Based on such audit procedures performed as considered reasonable and appropriate inthe circumstances nothing has come to our attention that causes us to believe that themanagement representations under sub-clauses (a) and (b) above contain any materialmisstatement. v. The dividend declared and paid during the year ended 31 March 2022 by theCompany is in compliance with section 123 of the Act.
For V C A N & Co.
Firm Registration No. 125172W
per Abhishek Jain
Membership No.: 0535564
Place: New Delhi
Date: 21 May 2022
Annexure A referred to in Paragraph 16 of the Independent Auditor's Report of even dateto the members of Siddhika Coatings Limited on the standalone financial statements for theyear ended 31 March 2022
In terms of the information and explanations sought by us and given by the Company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we report that:
(i)(a)(A)The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment and investmentproperty
(B) The Company does not have any intangible assets and accordingly reporting underclause 3(i)(a)(B) of the Order is not applicable to the Company.
(b) The Company has a regular program of physical verification of its property plantand equipment under which the assets are physically verified in a phased manner over aperiod of three years which in our opinion is reasonable having regard to the size ofthe Company and the nature of its assets. In accordance with this program certainproperty plant and equipment were verified during the year and no material discrepancieswere noticed on such verification.
(c) The title deeds of all the immovable properties (including investment properties)held by the Company (other than properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee) are held in the name of the Company.
(d) The Company has not revalued its Property Plant and Equipment or intangible assetsduring the year.
(e) No proceedings have been initiated or are pending against the Company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder. Accordingly reporting under clause 3(i)(e) of the Order is notapplicable to the Company. (ii) (a) The management has conducted physical verification ofinventory at reasonable intervals during the year. In our opinion the coverage andprocedure of such verification by the management is appropriate.
(b) The Company has not been sanctioned working capital limits by banks or financialinstitutions on the basis of security of current assets during any point of time of theyear. Accordingly reporting under clause 3(ii)(b) of the Order is not applicable to theCompany.
(iii) The Company has not made any investment in provided any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships (LLPs) or any other parties during the year.Accordingly reporting under clause 3(iii) of the Order is not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 186 of the Act in respect of loansinvestments guarantees and security as applicable. Further the Company has not enteredinto any transaction covered under section 185.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits or there is no amount which has been considered asdeemed deposit within the meaning of sections 73 to 76 of the Act and the Companies(Acceptance of Deposits) Rules 2014 (as amended). Accordingly reporting under clause3(v) of the Order is not applicable to the Company.
(vi) The Central Government has not specified maintenance of cost records undersub-section (1) of section 148 of the Act in respect of Company's products/businessactivity. Accordingly reporting under clause 3(vi) of the Order is not applicable.
(vii)(a) In our opinion and according to the information and explanations given to usundisputed statutory dues including goods and services tax provident fund employees'state insurance income-tax sales-tax service tax duty of customs duty of excisevalue added tax cess and other material statutory dues as applicable have generallybeen regularly deposited with the appropriate authorities by the Company though therehave been slight delays in a few cases. Further no undisputed amounts payable in respectthereof were outstanding at the year-end for a period of more than six months from thedate they became payable.
(b) According to the information and explanations given to us there are no statutorydues referred to in subclause (a) above that have not been deposited with the appropriateauthorities on account of any dispute.
(viii) According to the information and explanations given to us no transactions weresurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961) which have not been recorded in the books of accounts.
(ix) (a) According to the information and explanations given to us the Company has notdefaulted in repayment of its loans or borrowings or in the payment of interest thereon toany lender.
(b) According to the information and explanations given to us including representationreceived from the management of the Company and on the basis of our audit procedures wereport that the Company has not been declared a willful defaulter by any bank or financialinstitution or other lender.
(c) In our opinion and according to the information and explanations given to us moneyraised by way of term loans were applied for the purposes for which these were obtained.
(d) In our opinion and according to the information and explanations given to us theCompany has not raised any funds on short term basis during the year or in any previousyear. Accordingly reporting under clause 3(ix) (d) of the Order is not applicable to theCompany.
(e) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company the Company has not taken anyfunds from any entity or person on account of or to meet the obligations of itssubsidiary.
(f) According to the information and explanations given to us the Company has notraised any loans during the year on the pledge of securities held in its subsidiary.
(x) (a) In our opinion and according to the information and explanations given to usmoney raised by way of initial public offer were applied for the purposes for which thesewere obtained though surplus funds which were not required for immediate utilisation havebeen invested in readily realisable liquid investments.
(b) According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or (fully partially oroptionally) convertible debentures during the year. Accordingly reporting under clause3(x)(b) of the Order is not applicable to the Company.
(xi) (a) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or on the Company has been noticed or reported duringthe period covered by our audit.
(b) No report under section 143(12) of the Act has been filed with the CentralGovernment for the period covered by our audit.
(c) According to the information and explanations given to us including therepresentation made to us by the management of the Company there are no whistle-blowercomplaints received by the Company during the year. . (xii) The Company is not a NidhiCompany and the Nidhi Rules 2014 are not applicable to it. Accordingly reporting underclause 3(xii) of the Order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to usall transactions entered into by the Company with the related parties are in compliancewith sections 177 and section 188 of the Act. The details of such related partytransactions have been disclosed in the standalone financial statements etc. as requiredunder Accounting Standard (AS) 18 Related Party Disclosures specified in Companies(Accounting Standards) Rules 2021 as prescribed under section 133 of the Act.
(xiv) (a) In our opinion and according to the information and explanations given to usthe Company has an internal audit system as required under section 138 of the Act which iscommensurate with the size and nature of its business.
(b) We have considered the reports issued by the Internal Auditors of the Company tilldate for the period under audit.
(xv) According to the information and explanation given to us the Company has notentered into any non-cash transactions with its directors or persons connected with themand accordingly provisions of section 192 of the Act are not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly reporting under clause 3(xvi) of the Order is notapplicable to the Company.
(xvii) The Company has not incurred any cash loss in the current as well as theimmediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.Accordingly reporting under clause 3(xviii) of the Order is not applicable to theCompany.
(xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the plans of the Board of Directors and management nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report that Company is not capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date. We however state that this is not an assurance as to the futureviability of the company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the company as and when they fall due.
(xx) According to the information and explanations given to us the Company does notfulfill the criteria as specified under section 135(1) of the Act read with the Companies(Corporate Social Responsibility Policy) Rules 2014 and according reporting under clause3(xx) of the Order is not applicable to the Company.
(xxi) The reporting under clause 3(xxi) is not applicable in respect of audit ofstandalone financial statements of the Company. Accordingly no comment has been includedin respect of said clause under this report.
For V C A N & Co.
Firm Registration No. 125172W
per Abhishek Jain
Membership No.: 0535564
Place: New Delhi
Date: 21 May 2022