To The Members of Wonder Fibromats Limited
Report on the Standalone Financial Statements
We have audited the standalone financial statements of Wonder Fibromats Limited (theCompany) which comprise the Balance Sheet as at 31st March 2020 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and notes tothe financial statements including a summary of significant accounting policies and otherexplanatory information. In our opinion and to the best of our information and accordingto the explanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March'2020 the statement of profit/lossaccount and its cash flows for the year ended on that date.
Basis for Opinion
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 together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules there under and we have fulfilled ourother 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.
Management's Responsibility for Standalone Financial Statements
The Company's Board of directors is responsible for the matter stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position and financial performance of the Company and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rule 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; 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 also responsible for overseeing the company's financialreporting process.
Auditors' 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 highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provision of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and operating effectiveness of such controls. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company's director as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
Other Matters Paragraph
1. Company has not provided requisite disclosures in the financial statements asrequired U/s 22 of The Micro Small and Medium Enterprises Development Act 2006.
2. Scope Limitation due to COVID 19
The opinion expressed in the present report is based on the limited information factsand inputs made available to us through electronic means by the management. We wish tohighlight that due to the COVID 19 induced restrictions on physical movement and stricttimelines the audit team could not visit the company at year end for undertaking therequired audit procedures as prescribed under ICAI issued Standards on Auditing includingbut not limited to:
Physical verification of cash inventory at year end.
Examination of the physical verification process of fixed assets records at the yearend.
Our opinion is not modified in respect of above matter.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act wegive in the Annexure a statement on the matters specified in paragraphs 3 and 4 of theOrder 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 purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
c. The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
d. In our opinion the aforesaid standalone financial statements comply with AccountingStandards specified under Section 133 of the Act read with rule 7 of the Companies(Accounts) Rules 2014;
e. On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164(2) of theAct;
f. The company has adequate internal financial controls over financial reporting of theCompany and such controls are effective.
g. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
(i) The Company does not have any pending litigation which would impact its financialposition in its financial statements;
(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
Annexure to the Auditor's Report
The Annexure referred to in our report to the members of Wonder Fibromats Limited(the Company') for the year ended 31st March 2020. We reportthat:
1. (i) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(ii) The Company has a regular programme of physical verification of its fixed assetsby which all fixed assets are verified during the year. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets. No material discrepancies were noticed on such verification.
(iii) The title deeds of immovable properties are held in the name of the company.
2. As explained to us physical verification has been conducted by the management atreasonable intervals in respect of inventory. In our opinion the frequency of suchverification is reasonable.
3. During the year under audit the company has not granted any loans secured orunsecured to companies firms limited liability partnerships and other parties covered inthe Register maintained under Section 189 of the Companies Act 2013. Hence Clause 3 (iii)(a) (b) and (c) of the said order are not applicable to the company.
4. Company has not provided any Loans investment guarantee or security to any personcovered U/s 185 and 186 hence this clause is not applicable for the year 2019-20.
5. According to the information and explanation given to us the Company has notaccepted any deposit from the public.
6. Company is required to maintain cost records under section 148(1) of the Act and thesame has been maintained by the Company.
7. According to the information and explanation given to us in respect of statutorydues:
(a) The Company is regular in depositing undisputed statutory dues including providentfund employees' state insurance income tax sales tax wealth tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues with theappropriate authorities whichever is applicable.
(b) According to the information and explanations given to us there are no over duesof Income Tax or Sales Tax or Excise duty or Wealth Tax or Service Tax or duty of Customor duty of excise or value added tax or cess is pending for deposit due to any disputewith the authorities.
8. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holders as at the balance sheet date.
9. According to the records of the Company examined by us and the information andexplanations given to us during the year company has raised money by way of InitialPublic Offer. Company issued 2224000 Equity Shares of Rs 10/- Each at the price of Rs.89/- per share including Rs 79/- Share Premium per Share. Term loans taken during the yearwere applied for the purposes for which those are raised.
10. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no fraud on the Company has been noticed orreported during the year.
11. Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.
12. Company is not a Nidhi Company; hence this clause is not applicable.
13. According to the records of the Company examined by us and the information andexplanations given to us transactions made with Related Parties are in compliance withSection 188.
14. According to the records of the Company examined by us and the information andexplanations given to us during the year Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures.
15. According to the records of the Company examined by us and the information andexplanations given to us during the year Company has not entered into any non-cashtransaction with Directors or person connected with them as per the provisions of Section192.
16. According to the information and explanations given to us Company is not requiredto be registered U/s 45-IA of The Reserve Bank of India Act-1934.