To the Members of Rasi Electrodes Ltd
Report on the Standalone I nd AS Financial Statements Opinion
We have audited the accompanying standalone financial statements of Rasi Electrodes
Limited ("the Company"), which comprises the balance sheet as at 31 st March
2023, and the statement of profit and loss, statement of changes in equity and statement
of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone 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 I ndia,
of the state of affairs of the Company as on March 31,2023, and its profit, total
comprehensive income, its cash flows and the changes in equity for the year ended on that
date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditors
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 there under, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on the
standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone 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 be communicated in our report.
Information other than the Standalone Financial Statements and Auditors Report
thereon:
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis. Boards Report including Annexure to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders information, but does not
include the Standalone financial statements and our auditors report thereon.
Our opinion on the standalone 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 standalone financial statements, our responsibility
is to read the other information and in doing so, consider whether the other information
is materially inconsistent with the standalone 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 Standalone
Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act 2013 ("The Act") with respect to the preparation of
these Standalone Ind AS financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the company in accordance with
the accounting principles generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules
2014.
This responsibility also includes maintenance of adequate records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities, selection and application of appropriate
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 free from material misstatements, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the
Companys 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 Board of Directors is also responsible for overseeing the
Companys financial reporting process.
Auditors 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 auditors 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 control relevant to the audit in order to
design 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 whether
the company has adequate internal financial controls system 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 managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors 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 auditors
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 standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the result of our work, and (ii) to evaluate the effect of
any identified misstatements in the standalone 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
auditors 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
1. As required by the Companies (Auditors Report) Order, 2016 (‘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, a statement on the matters specified in
paragraphs 3 and 4 of the Order.
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 best
of 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 the
Company so far as it appears from our examination of those books.
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with
by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid financial statements comply with Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
e. On the basis of written representations received from the directors as on March
31,2023 taken on record by the Board of Directors, none of the directors are disqualified
as on March 31,2023 from being appointed as a director in terms of Section 164(2)of the
Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B".
g. The Company has complied with the provision of section 197 read with schedule V of
the Companies Act 2013.
With respect to the other matters to be included in the Auditors 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 does not have any pending litigations which would impact its financial
position.
ii) The Company does not have any long-term contracts requiring a provision for
material foreseeable losses.
iii) There has been no delay in transferring amounts required to be transferred to the
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 or its joint operation
companies incorporated in India to or in any other persons or entities, including foreign
entities ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or
its joint operation companies incorporated in India or
b. provide any guarantee, security or the like to or 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 or its joint operation from any persons or
entities, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company or its joint
operation companies incorporated in India shall:
• Directly or indirectly, lend or invest in other persons or entities identified
in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the
Funding Party or
• provide any guarantee, security or the like from or 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 - (iv)(a) and (iv)(b) contain any material misstatement.
v. The company has neither declared nor paid any dividend during the year.
For Poonam Ankit & Associates Chartered Accountant
Poonam Jain M Partner [M.No:228039]
UDIN: 23228039BGVSDE5381 Place: Chennai Date: 30/05/2023.
ANNEXURE A REFERRED TO IN PARAGRAPH 1 OF INDEPENDENT AUDITORS REPORT OF EVEN DATE TO
THE MEMBERS OF RASI ELECTRODES LIMITEDON THE FINANCIAL STATEMENTS OF THE COMPANY FOR THE
YEAR ENDED 31st MARCH, 2023.
In terms of Companies (Auditors Report) Order 2020, issued by the Central Government
of India, in terms of section 143(11) of The Companies Act, 2013, we further report, on
the matters specified in paragraph 3 and 4 of the said Order, that :-
1) (i) Property Plan and Equipment
(a) The company is maintaining proper records showing full particulars, including
quantitative details and situation of Property, Plant & Equipment.
(b) The company is maintaining proper records showing full particulars of intangible
assets.
(ii) The Property, Plant & Equipment have been physically verified by the
management at reasonable intervals.
(iii) The title deeds of immovable properties shown in the financial statements are
held in the name of the company.
(iv) The company has not revalued its Property, Plant & Equipment or Intangible
assets or both during the year.
(v) No proceedings have been initiated against the company for holding benami property
under The Benami Transactions (Prohibition) Act, 1988 and
rules made thereunder and the details have been appropriately disclosed in the
financial statements.
2) (i) Physical verification of inventory has been conducted at reasonable intervals by
management. In our opinion, the coverage and procedure by the management is appropriate.
The aggregate of discrepancies of 10% or more in each class of inventory noticed have been
properly dealt with in the books of account.
(ii) The quarterly returns/statements filed by the company with banks/financial
institutions arein agreement with the books of the company.
3) To the best of our information and according to the explanations provided to us by
the Company and the books of account and records examined by us
in the normal course of audit, we state that the Company, during the year under audit,
has not provided guarantee or security or granted any advances in the nature of loans,
secured or unsecured, to companies, firms, limited liability partnerships or any other
parties except to the extent disclosed under note no.26.5 of other significant notes. The
same is not prejudicial to the interest of the Company.
4) (i) The company has not made investments in, provided any guarantee or security
granted any loans or advances in the nature of loans, secured or
unsecured to companies, firms, LLPs, or any other parties except to the extent
disclosed under note no.4 of financial statements. The same is not prejudicial to the
interest of the Company.
(ii) There are no guarantees provided or security given by the Company.
(iii) The Company has not granted any loans or "advances in the nature of
loans". Accordingly, the requirements to report under paragraph 3(iii)? ,(d), (e)
& (f) of the order are not applicable to the Company.
5) The company has not given any loans or advances in the nature of loans, secured or
unsecured, to Companies, firms, Limited Liability Partnership firms
or any other parties and or provided guarantees/security to any other entity within the
meaning of sections 185 & 186 of The Companies Act, 2013. Accordingly, the
requirements to report under the Paragraph 3(iii)(a) (A) (B) of the order not applicable
to the Company.
6) The company has not accepted any deposits from the public in terms of Section 73 to
76 or any other relevant provisions of the Companies Act, 2013.
7) The Central Government has not prescribed the maintenance of cost records under
Section 148(1) of the Act, for any of the products manufactured by the
company.
8) (i) The company is regular in depositing undisputed statutory dues with appropriate
authorities.
(ii) According to records of the company, there are no statutory dues which have not
been deposited on account of any dispute, except the following:
Name of the Statute |
Nature of Dues |
Amount (Rs) |
Period to which the amount relates |
Forum where dispute is pending |
Customs Act 1962 |
Customs Duty |
84,85,596 |
2011-2013 |
Customs, Excise, Service Tax Appellate Tribunal, Chennai |
9) There are no transactions that are not recorded in the books of account to be
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961;
10) (i) The company has not defaulted in any repayment of dues to any financial
institution or bank or debenture holders.
(ii) The company has not been declared as a wilful defaulter by any bank or financial
institution or other lender.
(iii) The term loans have beenutilized for the purposes for which they were obtained.
(iv) The funds raised on a short term basis have not been utilized for long term
purposes.
(v) The Company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries, associates or joint ventures.
(vi) The Company has not raised any loans during the year on the pledge of securities
held in its subsidiaries, joint ventures or associate companies.
11) (i) The company has not made any initial public offer during the year of further
Public Offer (Including Debt Instrument) and accordingly, the requirements
to report under paragraph 3(x)(a) of the order are not applicable to the Company
(ii) The company has not made any preferential allotment or private placement of
shares/debentures during the year. Accordingly, the requirements to report under paragraph
3(x)(b) of the order are not applicable to the Company.
12) (i) Based upon the audit procedures performed and information and explanations
given to us by the management, we report that no fraud by the company
or on the company by its officers/employees have been noticed or reported during the
course of our audit.
(ii) No report under sub-Section (12) of Section 143 of the Companies Act has been
filed by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and
Auditors) Rules 2014 with the Central Government.
(iii) No whistle-blower complaints received during the year by the Company (and up to
the date of this report).
13) To the best of our information and according to the explanations provided to us by
the Company and the books of account and records examined by us in the normal course of
audit, we state that, the Company is not a Nidhi Company. Accordingly, requirements to
report under Paragraph 3(xii) of the Order are not applicable to the Company.
14) The transactions entered into with related parties are in compliance with section
177 & 188 of The Companies Act 2013 and the details have been disclosed in the
financial statements as required by the applicable accounting standards.
15) (i) The company has an internal audit system commensurate with the size and nature
of its business.
(ii) The reports of the Internal Auditors for the period under audit has been
considered.
16) The company has notentered into any non-cash transactions with directors or persons
connected with directors, during the year.
17) (i) The company is notrequired to be registered under section 45-IA of The Reserve
Bank of India Act, 1934.
(ii) The Company has not conducted any Non-Banking Financial or Housing Finance
activities without a valid Certificate of Registration (CoR) from the Reserve Bank of
India as per the Reserve Bank of India Act 1934.
(iii) The Company is not a Core Investment Company (CIC) as defined under the
Regulations by the Reserve Bank of India.
(iv) The Group does not have any CICs, which are a part of the Group. We have not,
however, separately evaluated whether the information provided by the Management is
accurate and complete. Accordingly, requirements to report under Paragraph 3(xvi) (d) of
the Order are not applicable to the Company.
18) The company has not incurred cash losses during the year and immediately preceding
financial year.
19) There has not been any resignation of the statutory auditors during the year.
Accordingly, the requirements to report under Paragraph 3(Xviii) of the order are not
applicable to the Company.
20) On the basis of the financial ratios, aging and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans, we are of the opinion that no material uncertainty exists as on the date of the
audit report that company is capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date.
We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
21) To the best of our information and according to the explanations provided to us by
the Company and the books of account and records examined by us in the normal course of
audit, we state that, there is no unspent amount under sub-section (5) of Section 135 of
the Companies Act, 2013 pursuant to any project. Accordingly, clauses 3(xx)(a) and
3(xx)(b) of the Order are not applicable to the Company
+91-9892691696
