We have audited the Financial Statements of Simplex
Papers Limited (“the Company”), which comprise the
Balance Sheet as at 31st March 2024, the Statement of
Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity and the
Statement of Cash Flow for the year then ended, and
notes to the Financial Statements, including a summary
of material accounting policies and other explanatory
information. (Hereinafter referred to as “the financial
statements'1)
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
Financial Statements give the information required by
the Companies Act, 2013 (“the Act”) in the manner so
required and give a true and fair view in conformity with
the Indian Accounting Standards prescribed under
Section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, (”Ind
AS”) and other accounting principles generally
accepted in India,
(a) in the case of the Balance Sheet, of the state of
affairs of the Company as at 31st March, 2024;
(b) in the case of the Statement of Profit and Loss
(including Other Comprehensive Income), of the
profit for the year ended on that date;
(c) in the case of the Statement of Changes in Equity,
of the changes in equity for the year ended on that
date; and
(d) in the case of the Cash Flow Statement, of the cash
flows for the year ended on that date.
Basis for Opinion
We conducted our audit of financial statement in
accordance with the Standards on Auditing (SAs)
specified under Section 143(10) of the Companies Act,
2013. Our responsibilities under those Standards are
further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with
the Code 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
Financial Statements under the provisions of the Act
and the Rules thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these
requirements and the ICAI's Code of Ethics.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
Emphasis of matter
We draw attention to the following matters in the Notes
to the financial statements:
The Company has accumulated losses and its net worth
has been fully eroded. This situation, along with other
matters set forth in Note no. 18, indicate the existence of
an uncertainty that may cast doubt about the
Company's ability to continue as a going concern.
However, as informed by the management and on the
basis of projections submitted to us, the financial
statements of the Company have been prepared on a
going concern basis for the reason stated in the said
note.
Our opinion is not modified in this matter.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the financial statements of the current period.
These matters were addressed in the context of our
audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a
separate opinion on these matters. 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
The Company's Board of Directors is responsible for the
preparation of the other information. The other
information comprises the information included in the
Annual Report, Management Discussion and Analysis,
Board's Report including Annexures to Board's Report,
Corporate Governance and Shareholder's Information,
but does not include the financial statements and our
auditor's report thereon.
Our opinion on the financial statements does not cover
the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements,
our responsibility is to read the other information and, in
doing so, consider whether the other information is
materially inconsistent with the financial statements or
our knowledge obtained during the course of our audit
or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude
that there is a material misstatement of this other
information; we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Management and Those
Charged with Governance for the Financial
Statements
The Company's Board of Directors is responsible for the
matters stated in Section 134(5) of the Act with respect
to the preparation of these financial statements that give
a true and fair view of the financial position, financial
performance including other comprehensive income,
changes in equity and cash flows of the Company in
accordance with the Ind AS and other accounting
principles generally accepted in India.
This responsibility also includes maintenance of
adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and
other irregularities; selection and application of
appropriate implementation and maintenance of
accounting policies; making judgments and estimates
that are reasonable and prudent; and design,
implementation and maintenance of adequate internal
financial controls, that were operating effectively for
ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and
presentation of the financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is
responsible for assessing the Company's ability to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless management either
intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Company's Board of Directors are also responsible
for overseeing the Company's financial reporting
process.
Auditor's Responsibilities for the Audit of the
Financial Statements
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or
error, and 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 with SAs will always detect a
material misstatement when it exists. Misstatements
can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic
decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material
misstatement of the financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal financial
controls relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances. Under Section 143(3)(i) of the Act,
we are also responsible for expressing our opinion
on whether the Company has adequate internal
financial controls with reference to Financial
Statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of
management's use of the going concern basis of
accounting and, based on the audit evidence
obtained, whether a material uncertainty exists
related to events or conditions that may cast
significant doubt on the Company's ability to
continue as a going concern. If we conclude that a
material uncertainty exists, we are required to
draw attention in our auditor's report to the related
disclosures in the 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's report.
However, future events or conditions may cause
the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and
content of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events
in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the
Financial Statements that, individually or in aggregate,
makes it probable that the economic decisions of a
reasonably knowledgeable user of the Financial
Statements may be influenced.
We consider quantitative materiality and qualitative
factors (i) in planning the scope of our audit work and in
evaluating the results of our work; and (ii) to evaluate the
effect of any identified misstatements in the Financial
Statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related
safeguards.
From the matters communicated with those charged
with governance, we determine those matters that were
of most significance in the audit of the financial
statements of the current period and are therefore the
key audit matters. We describe these matters in our
auditor's report unless law or regulation precludes
public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should
not be communicated in our report because the adverse
consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory
Requirements
As required by the Companies (Auditor's Report) Order,
2020 (“the Order"), issued by the Central Government of
India in terms of sub-section (11) of Section 143 of the
Companies Act, 2013, we give in the “Annexure A"
statement on the matters specified in paragraphs 3 and
4 of the Order, to the extent applicable.
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 best of our
knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required
by law relating to preparation of the aforesaid
Financial Statements have been kept so far as it
appears from our examination of those books
except for the matters stated in paragraph (i)(vi)
below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014.
c) The Balance Sheet, the Statement of Profit and
Loss, the Statement of Changes in Equity and the
Cash Flow Statement dealt with by this Report are
in agreement with the relevant books of account.
d) In our opinion, the aforesaid Financial Statements
comply with the Ind AS specified under Section
133 of the Act.
e) On the basis of the written representations
received from the directors as on 31st March, 2024
taken on record by the Board of Directors, none of
the directors is disqualified as on 31st March, 2024
from being appointed as a director in terms of
Section 164(2) of the Act.
f) With reference to maintenance of accounts and
other matter therewith, reference is invited to
paragraph (b) above on reporting under Section
143(3)(b) and paragraph (i)(vi) below on reporting
under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 as amended.
g) With respect to the adequacy of the internal
financial controls with reference to Financial
Statements of the Company and the operating
effectiveness of such controls, refer to our
separate Report in “Annexure B". Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company's
internal financial controls with reference to
Financials Statements.
h) With respect to the other matters to be included in
the Auditor's Report in accordance with the
requirements of Section 197(16) of the Act, as
amended, no remuneration is paid by the
Company to its directors during the year, hence
applicability of provisions of Section 197 read with
Schedule V of the Act does not arise.
i) With respect to the other matters to be included in
the Auditor's Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014,
in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of
pending litigations on its financial position in
its financial statements. (Refer Note 16 to the
financial statements)
ii. The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses.
iii. There were no dues which were required to
be transferred to Investor Education and
Protection Fund by the company.
iv. (a) The management has represented that,
to the best of its knowledge and belief, no
funds have been advanced or loaned or
invested (either from borrowed funds or
share premium or any other sources or
kind of funds) by the Company to or in
any other person(s) or entity(ies),
i n c l u d i n g fo re i g n e n t i t i e s
(“Intermediaries”), with the
understanding, whether recorded in
writing or otherwise, that the
Intermediary shall directly or indirectly
lend or invest in other persons or entities
identified in any 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 that,
to the best of its knowledge and belief, no
funds have been received by the
Company from any person(s) or
entity(ies), including foreign entities
(“Funding Parties”), with the
understanding, whether recorded in
writing or otherwise, that the Company
shall directly or indirectly, lend or invest
in other persons or entities identified in
any manner whatsoever by or on behalf
of the Funding Party (“Ultimate
Beneficiaries”) or provide any
guarantee, security or the like on behalf
of the Ultimate Beneficiaries.
(c) Based on such audit procedures as
considered reasonable and appropriate
in the circumstances, nothing has come
to our notice that has caused us to
believe that the representations under
sub-clause (i) or (ii) of Rule 11(e) of the
Companies (Audit and Auditors) Rules,
2014, as provided under (a) and (b)
above, contain any material
misstatement.
v. The Company has not declared or paid any
dividend during the year and has not
proposed any dividend for the year.
vi. Based on our examination, which includes
test checks, it is observed that the Company
has used accounting software for maintaining
its books of account which has a feature of
recording audit trail (edit log) facility and the
same has been operated throughout the year
for all relevant transactions recorded in the
software. Further, during the course of our
audit, we did not come across any instance of
the audit trail feature being tampered with.
As proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014 is applicable from April
1, 2023, reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014 on
preservation of audit trail as per the statutory
requirements for record retention is not
applicable for the financial year ended on March
31,2024.
For Khandelwal & Mehta LLP
Chartered Accountants
Firm Regn. No. W100084
Sunil Khandelwal
Partner
Membership No.101388
Place: Mumbai.
Date: 17th May, 2024.
UDIN: 24101388BKEBCY2104
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