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Soma Papers & Industries Ltd.

BSE: 516038 Sector: Industrials
NSE: N.A. ISIN Code: INE737E01011
BSE 00:00 | 04 Mar Soma Papers & Industries Ltd
NSE 05:30 | 01 Jan Soma Papers & Industries Ltd
OPEN 14.60
PREVIOUS CLOSE 14.60
VOLUME 5000
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Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 14.60
Sell Qty 1900.00
OPEN 14.60
CLOSE 14.60
VOLUME 5000
52-Week high 14.60
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 14.60
Sell Qty 1900.00

Soma Papers & Industries Ltd. (SOMAPAPERS) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

SOMA PAPERS & INDUSTRIES LIMITED

Report on the Audit of the Ind AS Financial Statements

Qualified Opinion

We have audited the accompanying Ind AS financial statements of SOMA PAPERS &INDUSTRIES LIMITED ("the Company") which comprise the Balance Sheetas at March 31 2021 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to financial statements including a summary of significantaccounting policies (hereinafter referred to as the "the Ind AS financialstatements").

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 forQualified Opinion section of our report the aforesaid Ind AS financial statementsgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2021 and profit changesin equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

a) As depicted in Note 4 of the Ind AS financial statements the company has carriedother receivables amounting to INR NIl. On the basis of internal evaluation themanagement has written off other receivables amounting to INR 149343 during the year.However in the absence of any documentary evidence and limited information available tous we are unable to obtain sufficient appropriate audit evidence and are unable tocomment on such write offs provided for and other receivable amounting to INR Nil carriedin these Ind AS financial statements.

As depicted in Note 7 of the Ind AS financial statements the company has carried loansand advances amounting to INR NIl. On the basis of internal evaluation the management haswritten off loans and advances amounting to INR 1433983 during the year. However in theabsence of any documentary evidence and limited information available to us we are unableto obtain sufficient appropriate audit evidence and are unable to comment on such writeoffs provided for and loans and advances to related parties amounting to INR Nil carriedin these Ind AS financial statements.

b) As depicted in Note 12 of the Ind AS financial statements the company has carriedinterest payable borrowings amounting to INR NIl. On the basis of internal evaluation themanagement has fully written back interest payable amounting to INR 2786879 during theyear. However in the absence of any documentary evidence/confirmations and limitedinformation available to us we are unable to obtain sufficient appropriate audit evidenceand are unable to comment on such write backs by the management and interest payableamounting to INR Nil carried in these Ind AS financial statements.

c) As depicted in Note 13 of the Ind AS financial statements the company has carriedadvances received from customers amounting to INR NIl. On the basis of internalevaluation the management has fully written back interest payable amounting to INR438332 during the year. However in the absence of any documentaryevidence/confirmations and limited information available to us we are unable to obtainsufficient appropriate audit evidence and are unable to comment on such write backs by themanagement and interest payable amounting to INR Nil carried in these Ind AS financialstatements.

d) As depicted in Note 13 of Ind AS financial statements the Company had statutoryliabilities w.r.t. sales tax water tax etc amounting to INR 1767233/-for the previousfinancial years. During the year the management on the basis of internal evaluation haswritten back the statutory liabilities amounting to INR 1767233. Due to write back ofstatutory liabilities the company could be liable for penal consequences. In the absenceof complete documentary evidence and limited information provided to us we are unable toobtain sufficient appropriate audit evidence and are unable to comment on thecompleteness accuracy and impact of noncompliances if any on the amount of INR NILcarried in these financial statements related to statutory liabilities of previousfinancial years.

As depicted in Note 13 of the Ind AS financial statements the company has carriedother liabilities amounting to INR NIl. On the basis of internal evaluation themanagement has fully written back other liabilities amounting to INR 54000 during theyear. However in the absence of any documentary evidence/confirmations and limitedinformation available to us we are unable to obtain sufficient appropriate audit evidenceand are unable to comment on such write backs by the management and interest payableamounting to INR Nil carried in these Ind AS financial statements.

The Company had also written back certain long aged Trade payables and Deposit payablesin the previous financial years. However in absence of any confirmation from the partieswe are unable to obtain sufficient appropriate audit evidence for the same and are unableto comment on such write back by the management.

e) As depicted in Note 27 of Ind AS financial statements the bank has auctioned theLand Factory Premises Plant and Machinery inventory and other assets lying at Nasik inFinancial Year 2007-08 which was approved by the Debt Recovery Tribunal. Auction proceedsreceived by bank has been utilised to repay Bank Cash Credit Liabilities Debentures withinterest Electricity charges deposit given to Labour court for Labour settlement SICOMLoans and other related expenses. The accounting of the above transaction has been done inprevious year on the basis of communication from bank. No confirmations from banksdebenture holders electricity department Sales Tax Authority or Labour court have beenreceived against the proceeds distributed by Bank.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India togetherwith the ethical requirements that are relevant to our audit of the Ind AS financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our qualified opinion.

Emphasis of Matter

We draw attention to:

a) Note No.26 to the Financial Statements of the Company. The Company has accumulatedlosses and has incurred cash losses in the current financial year. These conditionsindicate the existence of a material uncertainty that may cast significant doubt about theCompany's ability to continue as a going concern. However the management is expectingrevival of the company. Hence the financial statements of the Company have been preparedon a going concern basis.

b) The fact that the Company's borrowings from various lenders have been settled in200910. However as per records in MCA the charges are still outstanding.

Our opinion is not modified in respect of these matters.

Key Audit Matters

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

Except for the matter described in the Basis for Qualified Opinion section or MaterialUncertainty Related to Going Concern section we have determined that there are no keyaudit matters to communicate in our report.

Other information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Board's Report including Annexures to Board's Report but doesnot include the Ind AS financial statements and our auditor's report thereon.

Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements our responsibility isto read the other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the Ind ASfinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially 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.

Responsibility of Management for the Ind AS Financial Statements

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 Ind AS financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company'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.

The Board of Directors is also responsible for overseeing the Company's financialreporting process. Auditor's Responsibilities for the Audit of the Ind AS FinancialStatements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS 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 Ind AS 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 Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Ind AS financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Ind AS financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Ind AS financial statements.

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 Ind AS 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.

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 thematters specified in 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 of the aforesaidInd AS financial statements.

b) Except for the effects of the matter described in the 'Basis of qualifiedopinion' paragraph above in our opinion proper books of account as required by lawrelating to preparation of the aforesaid Ind AS financial statements have been kept by theCompany so far as it appears from our examination of those books.

c) The company does not have any branches. Hence the provisions of section 143(3)(c)is not applicable.

d) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Statement of Changes in Equity and the Statement of Cash Flow dealt with bythis Report are in agreement with the books of account.

e) Except for the effects of the matter described in the 'Basis of qualifiedopinion' paragraph above in our opinion the aforesaid Ind AS financial statementscomply with the Indian Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

f) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors are disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.

g) There is no adverse remark relating to the maintenance of accounts and other mattersconnected therewith.

h) With respect to adequacy of internal financial controls over financial reporting ofthe Company and the operating effectiveness of such controls refer to our separate reportin "Annexure B"

i) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition as referred to Note 19 (A) to the Ind AS financial statement.

(ii) The Company did not have any long-term contracts including derivative contracts;as such the question of commenting on any material foreseeable losses thereon does notarise.

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

3. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the Company has not paid/provided any managerial remuneration during the yearand hence provisions of section 197 of the Act are not applicable to the Company.

For GMJ & Co.

Chartered Accountants

(FRN: 103429W)

CA Sonia Didwania

Partner

M. No.: 410461

UDIN: 21410461AAAAAW5158

Place: Mumbai

June 17 2021

Re: SOMA PAPERS & INDUSTRIES LIMITED

Annexure 'A' to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

i. In respect of the Company's Fixed assets:

ii. The Company does not hold any fixed assets as at March 31 2021 therefore theprovisions of Clause 3 (i) (a) (b) and (c) of the said Order is not applicable to theCompany.

iii. There is no inventory in hand. Therefore Clause 3(ii) of the Order is notapplicable to the Company.

iv. The Company has not granted any loan secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of Clause 3 (iii)(a) (iii)(b) and(iii)(c) of the said Order are not applicable to the Company.

v. According to the information and explanation given to us the company has notgranted any loans or made any investments or provided any guarantees or given anysecurity in respect of which provisions of sections 185 and 186 of the Companies Act 2013are applicable.

vi. In our opinion on the basis of information and explanations given to us thecompany has not accepted any deposits from public within the meaning of Section 73 to 76of the Companies Act 2013 and the rules framed there under.

vii. On the basis of information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under section 148(1) of the CompaniesAct 2013 for any of the goods dealt by the Company. Therefore the provisions of clause 3(vi) of the Order are not applicable to the Company.

viii. According to the information and explanations given to us in respect ofstatutory dues:

a. The company has been regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Goods and Service Tax sales-taxservice tax duty of customs duty of excise value added tax cess and any otherstatutory dues to the appropriate authorities.

b. According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were in arrears as at March 31 2021 for a periodof more than six months from the date they became payable.

ix. According to the information and explanations given to us there are no dues whichhave not been deposited on account of any dispute in respect of income tax goods andservice tax sales tax service tax duty of customs duty of excise value added tax asat March 31 2021.

x. In our opinion and according to the information and explanations given to us theCompany has no dues to Financial Institutions banks Government during the year underaudit and the Company has not issued any debentures.

xi. According to the information and explanations given to us and based on the recordsand documents produced before us during the year the company has not raised money by wayof Initial Public Offer or Further Public Offer (including debt instruments) and termloans during the year. Therefore the provisions of Clause 3(ix) of the said Order are notapplicable to the Company.

xii. On the basis of the information and explanations given to us no material fraud bythe company or on the company by its officers or employees has been noticed or reportedduring the year.

xiii. On the basis of examination of records and documents and the information andexplanations given to us the Company has not paid/provided any managerial remunerationduring the year. Therefore the reporting under Clause 3(xi) of the said Order is notapplicable to the Company.

xiv. In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company and the Nidhi Rules 2014 are not applicable to ittherefore the provisions of Clause 3(xii) of the said Order are not applicable to theCompany.

xv. According to the information and explanation given to us all transactions with therelated parties are in compliance with Sections 177 and 188 of the Companies Act 2013where applicable. The details of such related party transactions have been disclosed inthe financial statements (Note 20) as required under Indian Accounting Standard (Ind AS)24 Related Party Disclosures.

xvi. On the basis of examination of records and documents and the information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Therefore the provisions of Clause 3(xiv) of the Order are not applicable to theCompany.

xvii. On the basis of examination of records and documents and the information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with him under the provisions of section 192 of CompaniesAct 2013. Therefore the provisions of Clause 3(xv) of the Order are not applicable tothe Company.

xviii. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of clause 3(xvi) of the Order are notapplicable to the Company.

For GMJ & Co.

Chartered Accountants

(FRN: 103429W)

CA Sonia Didwania

Partner

M. No.: 410461

UDIN: 21410461AAAAAW5158

Place: Mumbai

June 17 2021

Re: SOMA PAPERS & INDUSTRIES LIMITED

Annexure - 'B' to the Auditors' Report

(Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act"))

We have audited the internal financial controls over financial reporting of "SOMAPAPERS & INDUSTRIES LIMITED" ("the Company") as of March 31 2021in conjunction with our audit of the Ind AS financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining the internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of the internal controlstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued 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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 audit opinion on the Company's internal financial controls systemover 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 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 GMJ & Co.

Chartered Accountants

(FRN: 103429W)

CA Sonia Didwania

Partner

M.No.: 410461

UDIN: 21410461AAAAAW5158

Place: Mumbai

June 17 2021.

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