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Standard Surfactants Ltd.

BSE: 526231 Sector: Consumer
NSE: N.A. ISIN Code: INE307D01015
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NSE 05:30 | 01 Jan Standard Surfactants Ltd
OPEN 71.00
PREVIOUS CLOSE 69.30
VOLUME 142
52-Week high 97.00
52-Week low 51.30
P/E 29.08
Mkt Cap.(Rs cr) 50
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 71.00
CLOSE 69.30
VOLUME 142
52-Week high 97.00
52-Week low 51.30
P/E 29.08
Mkt Cap.(Rs cr) 50
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Standard Surfactants Ltd. (STANDARDSURFACT) - Auditors Report

Company auditors report

To

The Members of

STANDARD SURFACTANTS LIMITED Kanpur

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of STANDARD SURFACTANTS LIMITED("the Company") which comprise the Balance Sheet as at March 31 2022 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 312022 the profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act. 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 (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

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 financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding 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.

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.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility 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 high

level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud 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.

A further description of our responsibilities for the audit of financial statements isincluded in Annexure "A" of this Auditors report of STANDARD SURFACTANTS LIMITEDfor the financial year ending March 312022.

Report on Other Legal and Regulatory Requirements

1. 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.

2. 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 - 'B' a statement on the matters specified in paragraphs 3 and 4 of theOrder;

3. As required by Section143(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 including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 asamended.

e) On the basis of the written representations received from the directors as on March312022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164 (2) of theAct.

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 C". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols with reference to financial statements.

g) 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 has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at March 312022.

iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. (a) The Management has represented to us that to the best of its knowledge andbelief no funds have been advanced or loaned or invested (either from borrowed funds orshare premium or any other sources or kind of funds) by the company to or in any otherpersons or entities including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented to us that to the best of its knowledge and beliefno funds ( which are material either individually or in aggregate) have been received bythe company from any person(s) or entities including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;

(c) Based on our audit procedure conducted that are considered reasonable andappropriate in the circumstances nothing has come to our attention that cause us tobelieve that the representation under sub- clause (i) and (ii) of Rule 11 (e) as providedunder paragraph (2) (g) (iv) (a) & (b) above contain any material misstatement.

(d) The company has not declared or paid any dividend during the year in contraventionof the provisions of section 123 of the Companies Act 2013.

Annexure A to the Independent Auditor's Report to the members of STANDARD

SURFACTANTS LIMITED on its financial statements dated 31.03.2022.

The annexure referred to in the auditor's report of STANDARD SURFACTANTS LIMITED forthe year ended March 31 2022.

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 with reference to financialstatements in place and the operating effectiveness 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.

Annexure B to the Independent Auditor's Report to the members of STANDARD

SURFACTANTS LIMITED on its financial statements dated 31.03.2022.

Report on the matters specified in paragraph 3 of the Companies (Auditor's Report)Order 2020 ("the Order') issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 3 of 'Report on Other Legal and Regulatory Requirements' section.

To the best of our information and according to the explanations provided to us by theCompany and the books of account and records examined by us in the normal course of auditwe state that:

i) (a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment and relevant detailsof right-of use assets.

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

(b) The property plant and equipment and right-of use assets have been physicallyverified by the management according to the programme of periodical verification in phasedmanner which in our opinion is reasonable having regard to the size of the company andthe nature of its property plant and equipment. No material discrepancies were noticed onsuch verification.

(c) According to the information and explanation given to us and on the basis of ourexamination of the records of the Company all the title deed of immovable properties(other than properties where the company is the lessee and the lease agreements are dulyexecuted in favour of the lessee) are held in the name of the company

(d) The Company has not revalued its property plant and equipment (including right-ofuse assets) and intangible assets during the year.

(e) There are no proceedings initiated or are pending against the Company for holdingany benami property under the Prohibition of Benami Property Transactions Act 1988 andrules made thereunder.

ii) (a) According to the information and explanation given to us inventory has beenphysically verified at reasonable intervals by the management. In our opinion coverageand procedure of such verification of inventory followed by the management are reasonableand adequate in relation to the size of the company and naturOe of its business. Nodiscrepancies of 10% or more in the aggregate for each class of inventory were noticed onsuch verification.

(b) According to the information and explanations given to us and based on ourexaminations of the records the company has been sanctioned working capital limits inexcess of five Crore rupees in aggregate from banks or financial institutions on thebasis of security of current assets and the quarterly returns or statements filed by thecompany with such banks or financial institutions are not in agreement with the books ofaccount of the Company. The details are :

Quarter ending Value as per quarterly statement submitted with lenders Value as per books of accounts Difference
June 30 2021 2054.80 2083.75 (28.95)
September 30 2021 1681.66 1675.58 6.08
December 31 2021 1928.74 1813.90 114.84
March 25 2022 1754.91 1992.97 (238.06)

iii) According to the information and explanations given to us and based on ourexaminations of the records the company has not made investments in provided anyguarantee or security or granted any loans or advances in the nature of loans secured orunsecured to companies firms Limited Liability Partnerships or any other parties.Accordingly the provisions of clause 3(iii) (a) to (e) of the said order are notapplicable to the Company

iv) According to the information and explanations given to us and based on ourexaminations of the records the Company has not granted any loan or made any investmentor provide any guarantee or security to the parties covered under section 185 and 186 ofthe Companies Act 2013. Accordingly the provisions of clause 3(iv) of the said order arenot applicable to the Company

v) According to the information and explanations given to us in our opinion theCompany has not accepted any deposits from the public within the meaning of section 7374 75 and 76 of the Act read with the Companies (Acceptance & Deposit) Rules 2014 andother relevant provisions of the Act to the extent notified. Accordingly the provisionsof clause 3(v) of the said order are not applicable to the Company.

vi) The maintenance of cost records has not been specified by the Central Governmentunder Section 148(1) of the Companies Act 2013 for the business activities carried out bythe company. Accordingly the provisions of clause 3(vi) of the said order are notapplicable to the Company

vii) In respect of statutory dues:

a) According to the records of the company and information and explanations given tous the Company has generally been regular in depositing undisputed statutory duesincluding Goods and Services Tax provident fund employees' state insurance income-taxsales- tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues applicable to it with the appropriate authorities though there hasbeen slight delay in few cases. Further no undisputed amounts payable in respect thereofwere outstanding at the year-end for a period of more than six months from the date theybecome payable.

b) According to the information and explanations given to us the particulars of thestatutory dues referred to in subclause (a) which have not been deposited on account ofany dispute as on March 312022 is attached in "Annexure A 1"

viii) According to the information and explanations given to us Company has notsurrendered or disclosed any transaction previously unrecorded in the books of accountsin the tax assessments under the Income Tax Act 1961 as income during the year.Accordingly the provisions of clause 3(viii) of the Order are not applicable to thecompany.

ix) (a) According to the information and explanations given to us and as per the booksand records examined by us in our opinion the company has not defaulted in repayment ofloans or other borrowings or in the payment of interest thereon to any lender.Accordingly the provisions of clause 3(ix)(a) of the Order are not applicable to thecompany.

(b) According to the information and explanations given to us and the records of theCompany examined by us including representation received from the management the Companyhas not been declared willful defaulter by any bank financial institution or otherlenders.

(c) According to the information and explanations given to us and the records of theCompany term loans were applied for the purpose for which the loans were obtained.

(d) On overall examination of the financial statement ofthe Company prima facie nofunds raised on short term basis have been used for long term purposes by the Company.

(e) The Company does not have any subsidiary associate or joint venture. Accordinglythe provisions of clause 3(ix)(e) ofthe Order are not applicable to the company.

x) (a) According to the information and explanations given to us and as per the booksand records examined by us the company has not raised money by way of initial publicoffer or further public offer (including debt instruments). Accordingly the provisions ofparagraph 3(x) (a) ofthe Order are not applicable to the company.

(b) According to the information and explanations given to us and as per the books andrecords examined by us the company has made preferential allotment during the year andthe requirements of section 42 and section 62 of the Companies Act 2013 have beencomplied with and the funds raised have been used for the purposes for which the fundswere raised.

xi) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or any fraud on the Company has been noticed orreported during the year. Accordingly the provisions of paragraph 3(xi)

(a) and (b) of the Order are not applicable to the company.

(b) According to the information & explanations and representation made by themanagement no whistle- blower complaints have been received during the year (and up tothe date ofthe report) by the company.

xii) In our opinion the Company is not a Nidhi Company. Accordingly the provisions ofparagraph 3(xii) (a) to (c) of the Order are not applicable to the company.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by applicableaccounting standards.

xiv) (a) The Company does not have a formal internal audit system commensurate with thesize and nature of its business.

Accordingly the provisions of paragraph 3(xvi) (b) of the Order are not applicable tothe company

xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him and hence the provisions of paragraph 3 (xv) of the Order is not applicable tothe Company.

xvi) (a) The provisions of section 45-IA of the Reserve Bank of India Act 1934 (2 of1934) are not applicable to the

Company. Accordingly the provision of paragraph 3 (xvi) (a) to (d) of the Order is notapplicable to the Company.

xvii) In our opinion and according to the information and explanations provided to usThe Company has not incurred cash losses in the current financial year and in theimmediately preceding financial year.

xviii) There has been no resignation of the statutory auditors during the year.Accordingly provisions of paragraph (xviii) of the Order are 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 realization of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatcompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by thecompany as and when they fall due.

xx) To the best of our knowledge and according to the information and explanationsgiven to us Section 135 of the Companies Act 2013 is not applicable to the company Act.

Annexure C to the Independent Auditor's Report to the members of STANDARD

SURFACTANTS LIMITED on its financial statements dated 31.03.2022.

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") as referredto in paragraph 4(f) of 'Report on Other Legal and Regulatory Requirements' section

We have audited the internal financial controls with reference to financial statementsof STANDARD SURFACTANTS LIMITED ("the Company") as of March 31 2022 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Management and Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India". 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 the Company's policies the safeguardingof its 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 Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing prescribed under section 143(10) of the Act 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement 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 System Over Financial Reporting with referenceto standalone financial statements

A Company's internal financial control over financial reporting with reference to thesefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting with reference to these financialstatements 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 unauthorised 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 withreference to these financial statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these financial statements including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these financialstatements 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 with reference to these standalonefinancial statements and such internal financial controls over financial reporting wereoperating effectively as at March 312022 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

For ATUL GARG & ASSOCIATES
Chartered Accountants
Firm Registration No.001544C
FIZA GUPTA
Partner
Place : Kanpur Membership No. 429196
Date : 30.05.2022 UDIN: 22429196AKVMLF8749

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