INDEPENDENT AUDITORS' REPORT
To the Members of Sadhana nitro chem Limited
Opinion
We have audited the stand-alone financial statements or Mis. Sad hone Nflro Cbcm I. Company"), which
comprise !ho balance shee! as at 31ManJi 2023. and die stejepnerM of Pnom and Loss (Including Olhcr Comprehensive
(ncomed, Statement of changes in Eouiiy and Statement of Cash flows for (he year teen ended, and notes to the financial
statements. including a sum m 3 ry of sig nifica ni accou n I .rg pc in ies and doer explanatory irfonmafinnh=rei lafter referred to
as 'the slandalone fmapf.ial statements.
In purdji-mpn anrt to the be-gt of our information and according 1n Ihu explanations given to uu, Ida aforesaid slanda-pne
financial sia(dineifl& give lha infom-iaton required by t"= Act Ip Uia manner so r&qtiired amt give a Litre and view m
CoriVi n ity will 1IJ re accounting print:- pit;;; gsiiarailly acoa pled; ri I rid ia. of :f ia mate of affairs of ti 10 Company as at 31 March,
2023, it s pro fit, cha i igoe and its east i (tows for the year e titled un tli at date
Basis for Opinion
We conducted our audil in accordance with the Standards on Audit mj (SAs) specified under 3eclion 143(10) of the
Coni pomes Act. 2013 Our res ponsibi' ities under those Standards are funder descnf>sd in ide Auditor's Responsihi1 ities for
the Audii of tlie Ftnariciol Statements section cf our repon We s re i ndependent of tee Com pan / in accord a nee wi Hi me C od s
of Ethics ssued ny th e I r Stihtte pt Chartered Accouniants of I n-d n fog e 1hm wilh 1he eini cal regi lireme n1S that ere tsieve nt tp
our e.idd r,l the ftpencial statements under me provisions of Ine Comps n res Ac: 3013 am: lire R-.i'hs thereunder end we
have! 1. lJi iled nur otfier elhignl respon situ lili e s in ,h pcnm nr r.e wH h I neeR regi, Ire merlin a nd: I -e Code nf LI h ins. We bel, eve I h a I
the a udil avid&nca We have oiilei ned is Sul I it: a ri I end appropriate lo provide a ba Six far pur Opinion
Key Audit Matters;
Kay a add ma tie rs a to those matters that. in our professional judgm 6 n I. wore of most s igoifican co in c ur audii of bio fin a ncial
statements of the current period These matters wore addressed in th e context of our audit of tee firartcia1 statements as a
whole, and m forming our opinion thereon, and we do not provide a separate opinion on these matters.
The Company's management arc E3oard ot Directory are responsible for me other mforn-atior- The omer hbforTTialloii
comprises the information inr'uded in the Company's annual report. out does nnr inc’Lid-e me standalone financial
statements ardour auditor' report thereon
Our opinion np the etenha lone fingnns I sieremenfs rine& nnt nnysT the other intnrn'atipn a n rl ive dp r of epreS anyorm g1
essurahee rtinduninn Iherenn.
In ecifinauiiin with our a udi i of the standalone -irtancfal siafe.'nents. our iBsprjn'slbiJty is to 1 eac Liother informaSi in and. in
doing So, eadKidorwiiultior the other Inforn is materially niCoilSisLunl with [ho stun tin ont Financial stall.-: munis or our
iuti^i^dge obtained in LIil- auditor ijttieriirise appears to ba matarisfly t ilestated. tf bsssd on [ha vrort we iiat*e purfomiud.
cludti that [herd .s a maleria: misstatement of tills i.ilter Information, we are required ti report fact. We have
nothing to report i n tin s regard.
Res ponsib 11 Itios of Management a nd Those Cftrgod wtlb Go vornanco for the Sta nd a lone FI nano ia I Stalema nts
T he Company's Board of Directors is respon siote for the matters seated i n section 134j5) of ine Compsn ies Act .2013 f‘1 ue
Act") wilh respect tome preparation of ihese standalone fiino^jfel statements that give s true and ig rviewof the financial
position, luancial performance changes innnily and QA-sh flows ot I ti e? Company in Accordance with the acCfliifitiilg
pnficipieS generally Accepted in Ini.a. including Ihe ancn.i.nfng Slur cards Specified under section 133 d the Act Tins
responsibility also includes maintenance of adequate accounting records in accordance wjlh fhe provisions of the Ac! for
safeguarding ol the Assets of the Company and fot preventing and defecting frauds end other irregularities; selection and
application of appropriate accounting poHcfes: making Hidgmenis and estimates that are reasonable and pnjdejfii and
design, implarrvsiitallofl and maintenance of adequate Interna) tlrtandal oonlfds, tfiat were ope-ating effectively fci
ensuring tho accuracy and camp's Lon css of tho accouir ng iscores, relevant to the pro para tiun arc presentation of the
financial sfcStsmer its that g.vu a 1 rue and fjifYtew and a rufreoifrcini mater .a I misstatement, whether tluelo fraud or error.
In preparing ttieflnaiiclal statements, managen'pnr -s re sponsible for asses singthe Company's -in IHy tacantir-Le as a going
concern disclosing. cs applicable natters reined to going concern and using tiie going concern basis of accounting unless
mans g=ment eiiher intend s fr iqi li'deiie the Company or io cense operSjBcms. or has no realislic a tiemaiive h lit to do. so
ThSoarrl of Director is also responsible rnrnverseeinq I he Company financial report ug process
Auditor's Responsibilities for the Audit ol the Standalone Fina-nciul Statements
Our objectives are to obtain rea&otiaEte assurance At?Dul whothtir Ilia financial etaterowits as ,-j jifthole are free from
malei Ý a I mis sta La me m, whetbe r duo to fraud or arror, and is issue an auditor's re pa rt that Includes ou r opinion. Reasonabla
assurance is a high lov. iofaiSLirarict. tiut is not a cjuaranLc Ý that an audit conducted in Ýaccordance with SAswtil always
detecta materia:-misstatement when dexists. Misstatements can anse from fraud or error and are considered matierial if
i nd' v'idually c r Ý r rhs aggregate. mey could reaso naofy 0e oxpe cters to inflnence the econom ic decisjons of u sers taken on
the basis of these finanrtial slatemenfs
As part of an audit in accorffgnce with SAs we exccise piufessidnsl judgment and maintain professicna: skepticism
throughout the audit, We also1
identify end Fssfu;s the risks of mater h! hllSStatemert of I tie timnrml eteLenieiite, wiietfiei due to I mud Dr error resign
arid perform aud t prooeduree respor-sive to those risks and obtain audii avittenoe trial is sufficiuni and appropriate to
provide a basis forotif opinion.' bs risk of no) detactiny a matBrlal rriisslatuiriuiiL resulting fmm fraud is higher than tor
oriA resulliiig from error, as fraud may irwnlv coBusiori, frirgu-y, intontmual omlsilpris; rrhisropretLinlalions prflte
override of itrlerrial conlrot.
- OPinion understanding of eternal control relevant to the audit In order to design aud.t procedures that are
appropriate n the circumstances Under section me Companies Act. 2013. we are also responsible for
express-ng our opinion on whether the company has adequate interne! finance' controls system in p:ace and fee
nperaltng eifef:EivEr.EH.5 of such coJilrnls.
* Ey;h unto the 8pprop«rieteniB&£ or accounting policies used and ftte reasoopblpn-eps of accr-unl re eStiflij^e'S aid
related disc Q6Ure$ made by mantis err'" in.
Ý Conclude on j£ie approprlateness.-of mm my orient's usej ol the going contufri basis ol acoouiih<g and, based on the
audit ov. J q nee ohla 'nod, whether a mate n a i nndartainty exists re- atod to events o Ý' conditions ilia L may cast sig-lificanl
doubt on the Company's abihty toconbnua as agoing concern It we conclude'that ?Ýmaional uncertainty exists we
are required to craw attenlioi nour auditors report 10 the related disclosures m irie financial slatome-i'ts or. if such
disclosures are inadequate to modify our option Our cc-nclusons nre based on ihe audit evidence obtained up lo
the date of our auditor's resort. However, future ev e n15 or cond ifions may cause the Company lo ce a se to continue as
a going concern
Eva-ill a te tha overall presenlnlipn. structure Bfid cpnlsnl n1 1fie financial etalpmenls. ino-li irting the disclosures and
whnLhe-' 1.ne ImFincm elgtamenls neprespr.l ihe underlying transaction:-! nnrf eu-enls in a nianm:r ln.il artiieve^. fair
presentation
MaLenahiy Is Ihn magritajda crt standalone finarv: ul Etdterlftn!s ttidl, Individual y ci in aggregate,
1 decisions of a 1 oasonab ;l ki iuwladgeaue user of lbs standalone filane. slalamei its
may bo influenced. Wo consider LruaiiULalive materiality & qualitative factors in (i) planning iho scope of our audit and in
oval u ating the resu Its of ou r work: and (ii) to eual uate the effect of an y idefibfied misstatements i n the standalone financial
statements
We communicate wife those charged with governance regarding, among other martens, the p’armed scope and liming of
(he audit and significant audit findings, including any significant deficiencies in internal control thal we identify during our
audit.
We alsoprqvicfe Ihcme charged will 1 gnvEmanoR wi111 g slaLemenl him We have oc-n1; 1 ied with relevant alhioel FPEjulrenterilS
1 H-gurcing i ndepander.tte. ai d to Com n 1 u ntoftte with tlteta 3ll retttidnshi p> fi S nd chief 11: a I la rs dial may reasonably be Ihriu g hi
to be nr pnOUt indepEiiUuiiOE, end where applicable, related safeguards.
from ti c mallci.'s cofrimunicjitod wilh 1nosa chaigod with govemancu, wo dc-tcrmino Ihoso matters lhal wore of most
s. p ii if ica ncc- in the audit of itio sta nda: on-e f ntanciai statemen ts of the currant period ana are lhorefcro tho key a ud it matte ra..
Wc describe- these matters Incur auditor eport unless :aw or regulation precludes public d sefosuro about the matter or
when, in extremely rare circumstances, we rtetenmino that a manor should no- be communicated n dur repent because the
adverse consequences of doing so would reasonably tie: expected so outweigh the public interest benefits of such
communication
Report on Other Legal and Regulatory Requirements
As required ny I Me Companies (Auditor's Re p-rutl Order, ?0?n fl he Order') issued ny I he Centra; Government of Indie
and 4 o1 tl 1(3 Oftfe’, to ttm axle lit applitablo
2. As roqu irad Py Section 14 3(3) of the Act, we report, that
a We have sought and obtai ned a H the information a up explanati ems which to the bes! of our knowledge a nd be lief
were necessary fecthe purposes ofou r aud it
b In our opinion. proper nooks of accoum as required by law nave been * ept by the Com bony in so far as ft a ppears
From our exs miration of ihose books;
c The Balance Sheet. Mm Statement ol Profit and Loss ncftitiing Other Comprehensive Income, me Cash Ftow
Sfaiernahtend Ststamenl of Change'S 11 Eguiitydarall with hy (his ijbport are fiiegrEement with thareleventltaclts
of account
d. In nu.' ophiion, the aforesaid slandatcmis linantiu ftataenents comply wiih the Indian Accqunling Standayds
prescribed unde Ý sacUon 133 of the Act rood with relevant rules -ssuod thereundor
e On tne basis of the written representations received front ine directors as on 31 ' March. 2023 and taken on record
by tha Board of Directors, none of the cirectorsisd squal find os on 31” March, 2023 from being appointed as a
director .n terms of Section ’ 64(2}of iho Act;
F With respect to the adequacy of the internal financial contras over financial reporting of the Company a-nd me
oper.svng effertiveresB 0= StJCll conl'ols, refer to oytseparfite Report in "Annnyurs '
g WLI respect ta the -matter le be included in Lhfl Auditor's Report under section 1E)7( 16) -of (he Act
opinion and lathe best at our information and according La the explanation gfysipi lo us. the rartiunttreilori
pant by Lire Company to its diractu i s daring the year|s lii accordance witlt pruvis-ofts of Section 197 read with
Sdiadule y rd the Act. The nemunpralrtfi paid Id any director is net m excess of the In iris I a down pndar Siiution
"Ý97 toad w:Lh Schedule V of Ure Act.
h With respect to the ether matters to be ncljdod in the Auditor's Report n accordance witti Role tl of the
Con1 pan es (Audit and Aud-tors) R-.ies. 2014.-as amended. in our opinion-and to rhe best otour information and
seconding to the explanations given ta us
(i) The Company has disci osec ihe impact nt per fling liiirjations on its financial position m itb siandgloina
t‘na ncial si a Ir=men1s. Refer note 3 11d the Slaoh alone finanna Ý staterr e hts
iir) 1 he Company did not nave any Inng-term ciMitiecfs- including derivative coni rads 'or which there wa-e any
malarial (bra aeea trie lossa s
(li i: i here ha s not iwu nary occasiot Ý in casa of 11 m Comp; 11 ly dor ing the year under repot 1 iu t: ti isfar any Earns
to Ltio Invoslor Education and Protection Fund. Thus, the question of da lay In transferring such sums does
notarise
: Ivj (a) The Managemen t has represen ted that. to the best of <t's knowledge and be iief as disclosed in th c hoie
no. 45 to he standalone financial statements. no Funds have been advanced or Foanetf or invested (either
from borrowed Funds or securities prem t; m or any ot he: sou nces or kfnti of funds) h / ihe Connpar.y to or in
any other person entities}, Iticlutling foreign entities {'Intyrmerftaries'), with th= understanding.
Whether rHoondad in Wiling or oLtievWise that I he Intern ledimy spall directly or indirectly tend nr u vest in
ether persons nr entities identified li nny niannfl' wlialsnever nynr on behalf nf I fie Compary Ý "Jltimele
be neiktiarieii' \ af prav l! e any guar Antea, s-ticn oly nr the liite Ofl bahftll nf I ha Ulti mate Beneficiaries
(b) t he Managament has rspnsMfitud, ifiat. re ina bast of it's Knowtedg* and belief as diset&sad in the
rale no. 45 to the standalone tin a ncinl statement s. i so f u nd s have boon ractilv ud sy fbu Company trom any
aarson(s>or cntilyfi*s(. inefudhig foreign entities Funding Parties"), with the understanding, whether
licordod Ý n writing or olkiBrtwse, Liia I the Compary shall, di reefiy or indirod :y. le: id or invest ih uthc-rpersons
o: entities identify d in any manner whatsoever sy or on behalf of the Tun ping Party edit'male
Bo net diaries > or p nov d c any guaran te e, security or Ihg Hke on behalf of i he Ultimate Beneficiaries
(c) Rased on she aud i rvocedures lh^r hsve been considered reasonable and appropriate m the
circumstances, nothing nas come to our nnrice that has CB used us to ce ieve that the representations ur-rer(iyj As stalmd In note ho 50 tedne stand,sluna finahciill statements
(a) i Nt final d vidarid jjtiopxssafl m (he previoue yea/, riuularcd a paid by (ha Gatnpany rturtna tin: year is lr
accorda.hoa wilh Secbcu 123 of theAct, as applicable.
(b J The Board of Directors or the Company have proposed final dividend for the ye a r which is subject to the
approval of the membere al the ensuing Annual General Mooting The in:, urt of dividend proposod 'S in
accord ance wit n Section 123 of th e Ac: as applicable
For Jayesh Updia & Associates LLP
Chartered A ncounlanfs
Firm Reg istrali cm Ho. 12 M 42WIW1091 22
Jayesh Dadia
Partner
Membership No, 033973
Piacc of S i gita tu ro: Mumbai
24 ' May, 2023
LI DIM: 23033973BCVRBT2649
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